Barclays plans to cut around 5,000 jobs, representing approximately 5% of its workforce, by the end of 2026 as the British bank expands its use of technology and artificial intelligence (AI) to reduce costs and improve returns. The lender has already eliminated around 1,000 positions, with the remaining reductions expected before the end of the year. The planned cuts come as banks increasingly explore technology-driven ways to streamline operations and improve efficiency.

Barclays Chief Financial Officer Anna Cross told reporters that around 60% of the planned job reductions would affect support functions. These include roles involving software development, indicating that the restructuring will extend beyond traditional administrative positions. The bank has not provided a complete breakdown of the affected roles in the supplied information.

The job cuts form part of Barclays' broader effort to manage expenses while increasing its reliance on technology. Artificial intelligence is becoming an important consideration for financial institutions seeking to automate processes, improve operational efficiency and reduce the cost of delivering services.

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The restructuring comes amid wider changes across the financial services industry, where banks are reassessing staffing requirements as they invest in automation and digital systems. These developments are prompting lenders to evaluate how existing roles and support functions fit into their evolving operating models.

Despite the planned workforce reductions, Barclays reported a 12% year-on-year increase in quarterly profit, according to the supplied report. The rise highlights the bank's financial performance alongside its efforts to reduce costs and improve returns. However, it does not establish how much of the profit increase was attributable to technology investments or workforce changes.

Barclays expects to complete the planned reduction of around 5,000 positions by the end of 2026. With approximately 1,000 roles already eliminated, the remaining cuts are expected to take place over the coming months. The full impact on employees and the distribution of job losses across the bank's operations remain unclear.

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