London, October 22, 2026: British banking giant Barclays Plc plans to cut 5,000 jobs, representing around 5% of its global workforce, as it steps up efforts to reduce expenses and improve operational efficiency through technology and artificial intelligence (AI).
The announcement follows the bank’s third-quarter results, which showed a rise in pre-tax profit but weaker-than-expected revenue in key businesses, particularly fixed-income trading.
According to Barclays’ earnings statement, the restructuring forms part of a broader strategy to simplify its organisational structure, streamline operations and achieve cost savings.
Barclays Job Cuts: 60% Of Layoffs To Affect Support Functions
Around 60% of the planned job reductions will affect support functions, including developers. The bank had already eliminated approximately 1,000 positions during the first half of 2026, with the remaining cuts expected to be completed by the end of the year.
According to Bloomberg, Barclays employed around 93,000 people worldwide at the end of 2025.
Barclays Chief Executive Officer CS Venkatakrishnan said the bank intends to expand its use of AI, although the technology will account for only part of its wider efficiency programme.
“We will employ AI at scale,” he said. “But AI is the icing on the cake, not the cake.”
Venkatakrishnan made the remarks during a call with reporters, according to Bloomberg.
Barclays Bond Trading Revenue Falls 19%, Equities Business Surges 47%
Barclays reported a 19% year-on-year decline in fixed-income and currency trading revenue, known as FICC, to £1.01 billion ($1.4 billion) in the third quarter, falling short of analysts’ estimates compiled by Bloomberg.
The bank attributed the decline to reduced client activity in interest-rate and credit markets, along with challenging economic conditions that further affected trading in September.
Venkatakrishnan described the investment bank’s FICC performance as “somewhat disappointing” during a call with reporters.
In contrast, Barclays’ equities trading business recorded a 47% year-on-year increase in revenue, nearly matching the £1.01 billion earned from fixed-income and currency trading. The division delivered its strongest performance since at least 2009, a year after Barclays acquired Lehman Brothers’ North American operations.
The slowdown in bond trading also affected other major US banks, including JPMorgan Chase, Goldman Sachs and Bank of America. Their fixed-income trading revenue declined by as much as 17% year-on-year amid rising interest rates.
Barclays Q3 Pre-Tax Profit Climbs 12% To £2.3 Billion Despite Revenue Miss
Despite weakness in investment banking, Barclays reported a 12% year-on-year increase in third-quarter pre-tax profit to £2.3 billion ($3.1 billion), in line with forecasts compiled by the London Stock Exchange Group (LSEG).
However, the bank’s overall income fell short of market expectations. According to CNBC, group income stood at £7.4 billion against analysts’ estimates of £7.61 billion.
Its investment banking division generated £3.13 billion in total income during the quarter, slightly below forecasts, as weaker bond trading offset gains in equities.
The bank’s net interest income remained broadly unchanged at £3.91 billion, CNBC reported.
Barclays shares declined following the earnings announcement, falling as much as 2.4% as trading began in London.
Barclays Targets Further £300 Million In Savings By End Of 2026
Barclays reduced expenses by £201 million during the three months ending September and aims to achieve an additional £300 million in savings in the final quarter of 2026.
The latest measures follow a cost-reduction programme announced in February, after the bank faced investor concerns over higher-than-expected expenses reported in its half-year results.
According to Bloomberg, the workforce reductions are part of Barclays’ wider efforts to control spending, improve efficiency and free up resources for investment.
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Venkatakrishnan maintained that the bank remained on course to achieve its financial objectives for 2026 while expressing confidence in its longer-term outlook.
“With one quarter to go before the end of our original three-year plan, we have either achieved or are on track to achieve all of our 2026 group targets,” he said.
He added that Barclays remained confident of meeting its targets for 2028.
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