Barclays plans to cut around 5,000 jobs by the end of 2026 as the British banking group expands its use of artificial intelligence (AI) and technology to reduce costs and improve operational efficiency.

The planned reductions represent approximately 5% of the bank’s global workforce. Barclays has already eliminated around 1,000 positions, with a further 4,000 cuts expected before the end of the year.

The announcement highlights how technology investments are increasingly influencing workforce decisions across the financial services industry.

Support Functions Among the Roles Affected

Around 60% of the planned job reductions are expected to affect support functions, including software developers. The changes are part of Barclays’ broader efforts to simplify operations, modernise technology platforms and streamline internal processes.

The bank has been investing in technology for several years, with AI increasingly contributing to productivity improvements. However, Barclays has indicated that AI is only one part of its wider efficiency strategy, rather than the sole reason for the workforce reductions.

Some back-office functions supporting the bank’s UK operations are based in India, meaning the country could also be affected by the changes.

Barclays Links Efficiency Gains to Technology Investment

Barclays Chief Executive C.S. Venkatakrishnan said the workforce changes reflect investments the bank has made in technology over a number of years.

The bank is working to modernise its platforms, harmonise systems and simplify processes to improve productivity. Its leadership expects AI to play a more significant role as the organisation builds the infrastructure needed to deploy the technology at scale.

Barclays reported third-quarter pre-tax profits of £2.3 billion, up 12% from the same period a year earlier, although the result fell short of analysts’ expectations.

The bank also expects its efficiency measures to generate more than £1.1 billion in additional savings in 2027.

Unions Raise Concerns About Job Security

The announcement has renewed concerns about the effect of AI-led transformation on employees, particularly those working in administrative, operational and technical roles.

Sharon Graham, general secretary of the Unite union, criticised the job reductions and argued that employers should prioritise upgrading employees’ skills so they can remain employed as technology changes the workplace.

The debate reflects a wider question facing organisations adopting AI: whether productivity gains will primarily lead to smaller workforces or create opportunities for employees to move into new roles through training and reskilling.

AI Is Reshaping Workforce Planning Across Banking

Barclays is not alone in reassessing its workforce as it increases its use of technology. Other financial institutions, including HSBC and Standard Chartered, have also announced or considered workforce reductions amid efforts to improve efficiency and expand technology capabilities.

As AI tools become more capable of supporting coding, data processing and routine operational tasks, banks are evaluating how work can be reorganised and which skills will be needed in the future.

For HR leaders, this creates a dual responsibility: helping organisations capture the benefits of automation while supporting employees through changing job requirements. Workforce planning, skills assessments, internal mobility and targeted reskilling programmes are likely to become increasingly important.

The Future of Work Will Depend on More Than Automation

Barclays’ plans demonstrate how technology transformation can affect both business operations and employment. While AI may help organisations complete certain tasks more efficiently, successful adoption also depends on infrastructure, governance, employee capabilities and the redesign of existing processes.

The challenge for employers will be to balance cost savings and productivity with responsible workforce management. As businesses continue to integrate AI, transparent communication and practical reskilling opportunities will be essential to helping employees navigate the changing workplace.