Barclays has confirmed plans to eliminate 5,000 jobs by the end of 2026, representing about 5% of its global workforce, even as the UK lender reported higher quarterly profit and launched a £500 million share buyback. The restructuring is described as organisational simplification and technology change efficiency driven by AI, with around 1,000 positions already cut and most of the remaining reductions expected in UK operational and support functions.
About 60% of the planned job losses are expected to affect support functions, including technology and software development teams. Barclays says AI tools can automate routine tasks, assist with coding, and reduce staffing requirements for certain operational activities. The announcement coincided with third-quarter results showing profit before tax of approximately £2.3 billion, up 12% year over year. Profit after tax rose to £1.65 billion from £1.46 billion, while total group income increased 3% to £7.37 billion.
Equities trading revenue climbed 47% year over year, supporting the investment banking division. Chief executive C. S. Venkatakrishnan highlighted the bank’s performance and has previously framed AI as the icing on the cake, not the cake, signaling that the technology is being integrated into existing systems rather than replacing them wholesale. The bank also announced a £500 million share buyback, while restructuring costs are reported at about £501 million.
AJ Bell investment director Russ Mould said the third-quarter performance fell short of market expectations and that the buyback did not fully ease investor disappointment. He also cited rising group costs, the possibility of higher UK banking taxes in the upcoming budget, and a reported investigation into possible misrepresentation of risks in Barclays’ private credit portfolio. Barclays has until the end of 2026 to complete the workforce reductions, and the move highlights how AI adoption is reshaping staffing even at profitable financial institutions.
