British bank Barclays Plc has announced plans to cut 5,000 jobs, or about 5% of its total workforce, as part of a wider effort to reduce costs and improve efficiency using technology and artificial intelligence (AI).
The bank is focusing on simplifying its organisation and making its operations more efficient, according to Barclays’ third-quarter earnings statement.
About 60% of the planned job cuts will affect support functions, including developers. Barclays had already cut around 1,000 jobs during the first six months of 2026. Barclays employed around 93,000 people globally at the end of 2025, according to Bloomberg. Barclays’ revenue from fixed-income and currency trading, also known as FICC, fell 19% year on year to £1.01 billion ($1.4 billion) in the third quarter. Barclays’ equities trading revenue jumped 47% year on year, almost matching the £1.01 billion generated by its fixed-income and currency trading business. The equities division recorded its strongest performance since at least 2009, the year after Barclays acquired the North American business of Lehman Brothers. Revenue at these banks’ fixed-income desks fell by as much as 17% year on year as they dealt with the impact of rising interest rates. Barclays’ investment bank reported total income of £3.13 billion in the third quarter, slightly below expectations. Group income stood at £7.4 billion, compared with analysts’ estimate of £7.61 billion, according to CNBC. Barclays’ pre-tax profit increased 12% year on year to £2.3 billion ($3.1 billion) in the third quarter, matching forecasts compiled by LSEG. The bank’s net interest income remained broadly unchanged at £3.91 billion, according to CNBC. The bank reduced costs by £201 million in the three months through September. It plans to cut costs by a further £300 million in the final quarter of 2026. Venkatakrishnan said Barclays was on track to meet its existing targets for 2026 and remained committed to its longer-term plans. He added that the bank remained confident in its 2028 targets. The stock traded as much as 2.4% lower as the London market opened.
The decline reflected lower client activity in interest-rate and credit markets, as well as further difficulties in September due to the broader economic environment, according to the bank. Other major US banks, including JPMorgan Chase, Goldman Sachs and Bank of America, also reported declines in fixed-income trading revenue. The bank had announced a fresh cost-cutting programme in February, and investors have been watching whether it can deliver the promised savings. Barclays shares fell after the results were announced.
Barclays Chief Executive Officer CS Venkatakrishnan said the bank plans to use AI on a large scale but stressed that the technology is only one part of its cost-cutting strategy. “We will employ AI at scale,” he said. Venkatakrishnan made these remarks during a call with reporters, according to Bloomberg. Venkatakrishnan described the investment bank’s FICC performance as “somewhat disappointing” during a call with reporters. The latest job reductions form part of its broader effort to improve efficiency and manage spending, according to Bloomberg. “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.
“But AI is the icing on the cake, not the cake. The bank’s results missed several analyst estimates, with weakness in its investment banking business offsetting stronger performance in some other areas. The bank’s bond traders recorded a particularly sharp decline in performance during the quarter, while its equities trading business delivered strong growth. The result was below analysts’ expectations compiled by Bloomberg. The weakness in bond trading reduced the impact of a strong performance in equities, where revenue increased significantly during the quarter. The weakness in fixed-income trading was not limited to Barclays. The bank’s overall group income also came in below forecasts, despite an increase in pre-tax profit. However, the bank’s performance varied across its businesses, with weakness in investment banking affecting the overall results. Barclays has been under pressure to control expenses after reporting higher-than-expected costs in its half-year results. The additional savings are part of Barclays’ continuing drive to lower expenses and create more room for investment.
The remaining cuts are expected to take place before the end of the year. The announcement came as Barclays reported its third-quarter earnings on Thursday.
