Barclays (LON: BARC) has disclosed plans to eliminate roughly 5,000 positions across its global operations by the close of 2026, equivalent to about 5 percent of its total workforce. The lender reported a headcount of approximately 93,000 employees at the end of 2025.
Of the planned reductions, around 1,000 roles had already been eliminated during the first half of the year, with the remaining 4,000 expected to conclude before year-end.
The bulk of the changes target support and operational functions, accounting for about 60 percent of the total, including fewer software developers as productivity gains emerge from technology upgrades.
Cost savings are concentrated primarily on the UK retail banking division.
A notable share of the affected roles involves back-office work supporting UK operations that is performed in India.
Executives framed the reductions as part of a longer-running modernisation effort involving substantial investments in technology infrastructure, platform updates, system harmonisation, and process simplification.
Group chief executive C.S. Venkatakrishnan described artificial intelligence as having an important role that could grow larger over time, stating that the bank intends to deploy AI at scale.
He characterised AI as the “icing on the cake” rather than the core of the strategy, emphasising that foundational infrastructure work is required first to unlock meaningful benefits.
Chief financial officer Anna Cross linked the steps to structural cost reductions aimed at freeing capacity for further investment.
The bank recorded £201 million in such actions during the third quarter, with an additional £300 million planned for the final quarter.
Overall efficiency measures are projected to generate more than £1.1 billion in savings during 2027.
Year-to-date cost actions have run roughly double the pace of the prior two years.
The announcement accompanied third-quarter results showing pretax profit of £2.3 billion, a 12 percent rise from the prior-year period, though the figure came in below some analyst expectations. Group income reached £7.4 billion, up 3 percent year-on-year.
Strong equities performance helped offset weaker fixed-income trading activity, which the chief executive described as somewhat disappointing amid lower client volumes in rates and credit markets plus broader macroeconomic pressures.
The bank also announced a £500 million share buyback.
Shares traded modestly lower in London following the update.
Barclays is nearing the conclusion of a three-year performance plan focused on cost discipline and technology capability.
The lender noted it is building the skills and workforce required for its strategy while supporting colleagues through the transition.
Industry observers noted that similar technology-driven efficiency moves are appearing at other European banks, though Barclays has stressed that infrastructure modernisation underpins the current gains more than AI alone at this stage.
The steps illustrate how sustained technology spending in banking is beginning to translate into leaner staffing models, particularly in support areas, while the firm continues to target improved returns and operational simplification.
