Barclays to shed 5,000 jobs as AI integration accelerates

Group CEO CS Venkatakrishnan pointed to a strong financial performance, noting that income climbed 3 percent to £7.4 billion compared to the same period last year. With a return on tangible equity reaching 11.7 percent for the quarter, the bank remains on track to hit its core 2026 targets. Despite these gains, the bank is aggressively streamlining its workforce, with 1,000 positions already phased out and 4,000 more slated for elimination by year-end. This reduction represents approximately 5 percent of the bank's global headcount, with significant impacts expected in both the UK retail sector and back-office functions based in India.

The bank characterizes the staff reduction as part of an ongoing modernization strategy, though the integration of AI is increasingly central to these cost-saving measures. This move follows a similar trend at HSBC, which recently signaled its own intent to reduce headcount within its UK wealth management division. While Barclays remains focused on its long-term strategy—including a commitment to return at least £10 billion in capital to shareholders through 2026—the private banking and wealth management division saw its attributable profit dip 6 percent to £68 million, weighed down by an 18 percent increase in investment costs.