Barclays is turning AI gains into a 5,000-job reckoning. The bank plans to cut around 5,000 roles as part of a cost-saving programme, saying advances in artificial intelligence are making its workforce more productive. The reduction equals about 5% of Barclays’ 93,000 global staff.
Executives confirmed that Barclays has already cut 1,000 workers since the start of the year. The planned reduction is tied to a target of saving more than £1.1bn in 2027, giving the AI story a familiar corporate translation: fewer people, lower costs, and a better return.
Support roles take the hit
Anna Cross, Barclays’ chief financial officer, said the cuts form part of the plans to deliver those savings. “These actions involve an expected reduction of circa 5,000 full-time employees. Around 60% of the group actions relate to support functions, including fewer developers, as AI makes our people more productive.”
That means support functions will account for around 60% of the group actions, with developers among the roles affected. Barclays has not presented AI as a side project or a distant experiment; its executives are connecting the technology directly to staffing decisions and the bank’s efficiency gains.
CS Venkatakrishnan, Barclays’ chief executive, said, “AI has an important role to play and may have a more important role to play in the future.” He also said, “That is driving the bulk of the efficiency gains that you’ve seen so far. AI has an important role to play and may have a more important role to play in the future.”
Venkatakrishnan described the bank’s approach in practical terms: “We have been focusing on the infrastructure build, and where the infrastructure is modern, we’ve been applying AI.” The message is clear enough—modern systems make AI easier to deploy, and deployment is now part of the case for reducing headcount.
Profit growth meets pressure for more tax
The job cuts arrived alongside stronger financial results. Barclays reported £2.3bn in pre-tax profits for the July to September quarter, up 12% from £2.1bn during the same period last year.
The bank also announced plans to hand a further £500m to investors, taking the total amount given to shareholders since January to £2.8bn. Barclays is therefore cutting workers to save money while reporting higher profits and returning more money to shareholders—a combination that tends to attract attention beyond the boardroom.
Net interest income at Barclays’ UK retail banking operations rose 6% to £2bn. The figure measures the money banks make from loan charges minus what they pay on deposits, and it is linked to interest rates.
That £2bn has become a flashpoint for campaigners pushing for a bank tax. The Trades Union Congress said lenders need to contribute more while people struggle with household bills, turning Barclays’ results into part of a wider argument about how banks should share their gains.
Paul Nowak, the TUC general secretary, said: “Barclays’ bumper profits aren’t an anomaly. All the big banks are doing exceptionally well … Britain’s big four banks have made £200bn in profit since 2021. They can – and should – pay more tax.”
Barclays’ announcement places AI at the centre of that conflict. The bank says the technology is helping produce efficiency gains and supports a plan to save more than £1.1bn in 2027; campaigners see rising profits, shareholder payments, and household pressure as reasons for banks to contribute more tax.
The immediate result is concrete: 5,000 fewer jobs, including fewer developers, with about 60% of the actions focused on support functions. AI may have a more important role in the future, as Venkatakrishnan put it. For the workers facing the present, that future has already arrived.
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