Barclays to cut about 5,000 jobs this year, citing AI efficiency gains as one reason
According to a WSJ report, Barclays will cut about 5,000 positions this year, roughly 5% of its workforce, citing efficiency gains from AI. About 1,000 of these positions were already cut in the first half, with the rest to be completed by year-end; about 60% of the layoffs fall in support functions, and CEO C.S. Venkatakrishnan said this includes fewer developers because AI makes employees more efficient. In the same period, Barclays' third-quarter pre-tax profit rose 12% to £2.3 billion; HSBC is reportedly considering cutting up to 20,000 positions over the coming years, and Standard Chartered plans to reduce corporate function roles by more than 15% by 2030. Venkatakrishnan said AI is just the icing on the cake rather than the cake itself, and its savings depend on infrastructure already built.
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Barclays is cutting about 5,000 jobs citing AI efficiency gains, and has given the pace of layoffs and job distribution, offering a concrete look at where AI substitution is landing in banking.
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WSJ: Barclays will cut about 5,000 jobs this year, roughly 5% of staff, citing AI efficiency gains.
About 1,000 of those roles went in the first half of 2026, and the rest go before year end.
Around 60% of the cuts fall on support functions, “including fewer developers as AI makes our people more productive,” said Chief Executive C.S. Venkatakrishnan.
All these while 3rd-quarter pretax profit rose 12% to £2.3B. Among rivals, HSBC is reportedly weighing up to 20,000 role cuts over the coming years, while Standard Chartered plans to shrink corporate function roles by more than 15% by 2030.
Venkatakrishnan calls AI the icing rather than the cake, because its savings depend on infrastructure built beforehand.