Barclays to cut about 5,000 jobs while its CEO calls AI the icing

Barclays said it is cutting about 5,000 jobs, roughly 5% of its workforce, by the end of 2026. Its published statement ties the cuts to AI. Its chief executive said investment in technology and simpler processes has driven the bulk of the efficiency gains so far.

The bank announced the cuts Oct. 22, 2026, with its third-quarter results, Euronews reported. About 1,000 of the jobs went in the first half of the year and the other 4,000 fall in the second half, Dow Jones reported.

The Bank Names AI in Its Own Statement

Barclays said in its earnings presentation that it is carrying out “organisational simplification and technology change efficiency driven by AI,” Euronews reported. The bank’s statement, quoted by the Guardian, said “AI makes our people more productive.” About 60% of the cuts affect support functions, including developers, Euronews reported.

CFO Anna Cross told reporters the cuts are part of plans to save more than £1.1 billion in 2027, the Guardian reported.

The CEO Credits Technology Spending First

CEO C.S. Venkatakrishnan, asked how many of the cuts are directly linked to AI, said “deep investments” in technology and simpler processes are “driving the bulk of the efficiency gains that you’ve seen so far.” He said “AI has an important role to play and may have a more important role to play in the future,” the Guardian reported.

He called AI the “icing on the cake” of modernizing the bank’s technology. “We have been focusing on the infrastructure build, and where the infrastructure is modern, we’ve been applying AI,” he said.

Profit Rose While Pretax Income Missed

Third-quarter net profit rose 13% to £1.65 billion, Dow Jones and Euronews reported. Pretax profit of £2.32 billion fell short of the analyst consensus of £2.42 billion.

What an Analyst and Other Banks Say

Will Howlett, an analyst at Quilter Cheviot, said the announcement shows “just how significantly AI and automation could reshape the banking industry over the next few years.” He added: “we are increasingly reaching the point where that investment translates into fewer people being required to run the business,” Euronews reported.

Standard Chartered said months ago it would cut more than 7,000 jobs over four years as it uses more AI, the Guardian reported. Its CEO Bill Winters said in May that AI would allow the bank to replace “lower-value human capital,” then walked back the comments and apologized, per Dow Jones. Commerzbank and DNB have also outlined job cuts and a deeper push into AI this year, Dow Jones reported.

What It Means for the Labs

Barclays named AI in its earnings presentation, while Venkatakrishnan credited technology investment. We think the bank’s own wording puts AI at the center of the announcement while its CEO assigns most of the gains to modernization. AI gets named in cuts it may not have driven alone. That gap is what the labs are being held to account for in public.