British financial giant Barclays bank has confirmed plans to cut around 5,000 jobs by the end of 2026. This major shift forms part of a wider AI efficiency drive designed to modernise the institution. The cuts represent roughly five per cent of the lender’s global workforce.
The announcement arrived alongside a fresh earnings update. Figures showed that net profit grew by 13 per cent during the third quarter. Surging income across the equities division largely fuelled this financial growth.
Barclays bank: Technology change and job cuts
Management outlined the strategy within a detailed earnings presentation. The group noted it was executing strict organisational simplification. Leadership pointed directly to banking technology advancements as a primary catalyst.
About 60 per cent of the job losses relate to support functions, including fewer developers as AI makes our people more productive,” the bank stated.
Profit after tax climbed significantly for the period. The figure reached £1.65 billion for the third quarter. This marked a solid rise from £1.46 billion recorded during the same period a year earlier.
Strong equities performance
Chief executive C. S. Venkatakrishnan pointed to ongoing momentum in operational performance. He noted that the investment bank division delivered strong equities performance.
Revenue from equities jumped 47 per cent compared to the previous year. Meanwhile, total group income for the quarter climbed three per cent to reach £7.37 billion. Market reaction remained calm, and the company share price ticked up slightly following the news.
Investor response and market challenges
Not all market watchers shared an entirely positive outlook. Industry experts noted that some segments of the update missed wider market expectations.
The AI announcement “comes as the company failed to match expectations with its third-quarter performance — with the unveiling of a healthy share buyback failing to entirely ease investors’ disappointment,” noted AJ Bell investment director Russ Mould.
“Across the wider group, costs went up, and Barclays shareholders are also having to contend with two major clouds over the business,” Mould added.
The first being a widely expected increase in tax on the sector in next week’s (UK) budget and the other being a reported probe into possible misrepresentation of risks in its private credit portfolio.
