Barclays Cuts 5,000 Jobs, Citing AI, as Third-Quarter Pretax Profit Rises 12%

Barclays plans to cut about 5,000 jobs, roughly 5% of its workforce, by the end of 2026, Reuters reported on Thursday, Oct. 22. The British bank disclosed the cuts alongside its third-quarter earnings.

It said it is using artificial intelligence and other technology to reduce fixed costs and improve returns.

Barclays chief financial officer Anna Cross told reporters that about 60% of the cuts will fall on support functions such as developers. Reuters called it one of the clearest signs yet from a big bank of how AI is letting firms shrink headcount in those roles.

Cross said 1,000 roles are already gone. The rest will go by year-end.

Where the Cuts Fall

Bloomberg reported that the 5,000 figure includes the 1,000 positions trimmed in the first half. It described the move as part of an effort to hold down costs. The bank had posted disappointingly high expenses earlier this year.

Barclays had about 93,000 employees worldwide at the end of 2025. Most of the reductions are in operational and functional roles. Chief executive C.S. Venkatakrishnan said the cuts follow technology investments the bank has made over several years.

It is still making them.

Cost Savings and Quarterly Profit

In the third quarter, Barclays booked £201 million of what it calls structural cost actions. About £600 million has been booked this year. Roughly £300 million more is planned for the final three months.

Most of the savings came from the UK retail bank, with a share from the investment bank.

Pretax profit for the quarter was £2.3 billion ($3.08 billion), up 12% from £2.1 billion a year earlier. Group income came in at £7.4 billion. Analysts had expected £7.61 billion.

Weakness in Fixed Income Trading

The investment bank's income was £3.1 billion, short of the £3.3 billion forecast. Fixed income trading, which covers bonds and similar products, fell 19%. Barclays' US rivals averaged a 5% drop. Equities did better.

Revenue there rose 47%, ahead of an average 37% gain at the five largest US banks, based on a Reuters calculation.

Venkatakrishnan said he was disappointed with fixed income and would give it his attention. He blamed a volatile quarter and weak trading in rates and credit products.

Will Howlett, a financials analyst at Quilter Cheviot, said the cuts show how far AI and automation could reshape banking over the next few years. Reuters noted that Microsoft and HSBC have also announced layoffs this year as automation affects employment.

Bank Taxes in Focus Ahead of Oct. 28 Budget

Barclays is the first major European lender to report quarterly results. Its figures arrive before British finance minister John Healey's first budget on Oct. 28. Further taxes on banks may be introduced there.

Healey has declined to rule out raising taxes on bank profits, even after heavy public and private lobbying by the industry. Banks argue they already face high taxes compared with other countries. They say a new levy would curb lending.

Barclays shares have fallen 12% so far this year, in line with other European lenders, according to Reuters.