Barclays will eliminate around 5,000 positions by the end of 2026, about 5 per cent of its global workforce, as the British bank turns to technology, including artificial intelligence, to cut fixed costs. The announcement on 22 October came alongside third-quarter results that missed market forecasts, and it lands as Australia's own National Australia Bank prepares to shed up to 2,500 jobs.
According to Firstpost, Barclays reported a third-quarter profit of £2.3 billion ($3.08 billion), up from £2.1 billion a year earlier, but weaker than analysts expected after a soft performance in fixed-income trading. Reuters, via Euronext reported that the cuts are part of a drive to use technology such as AI to lower fixed costs and lift returns.
What the Barclays cuts mean
Chief financial officer Anna Cross told reporters that roughly 60 per cent of the reductions will fall on support functions, including software development. About 1,000 positions have already gone, with the remainder to be completed by the end of the year. The bank booked another £201 million in restructuring costs during the quarter.
Chief executive CS Venkatakrishnan did not hide his frustration with the trading result, particularly in rates and credit products.
I am disappointed, and you can be sure this will get my attention.
Investors agreed. Barclays shares fell 2.5 per cent in early trading and are down about 14 per cent this year, in line with a broader slide across European banking stocks after a long rally built on higher interest rates. City AM noted the reductions will cover five per cent of the group's global headcount as the FTSE 100 lender ramps up its cost-cutting targets.
Why NAB's job cuts matter for Australia
The more immediate story for Australian readers sits closer to home. National Australia Bank, the country's largest business lender and third-largest home lender, plans to cut as many as 2,500 jobs over the next 12 months, roughly 6 per cent of its workforce. Up to 1,500 positions are expected to go by the end of 2026, alongside a reduced reliance on external consultants and contractors.
NAB says the changes are designed to simplify operations and improve productivity, risk management and execution. Chief executive Andrew Irvine insists the bank's broader strategy remains intact.
Not everyone is convinced. The Finance Sector Union, which is due to be consulted on the proposals, has pushed back. National assistant secretary Nicole McPherson argued that cutting jobs will not necessarily make the organisation simpler to run. For a workforce already navigating branch closures and digitisation, the union's concern is that efficiency is becoming a synonym for headcount reduction.
Technology, efficiency and the future of banking jobs
Both banks frame their decisions in the language of technology and productivity. Barclays points to AI and automation as tools to strip out fixed costs. NAB talks about complexity and execution. The pattern is familiar across the sector: lenders that expanded during the era of cheap money and record margins are now restructuring for a slower, more competitive environment.
What remains genuinely uncertain is the long-term effect of AI on bank employment. Some roles in software development and back-office support are clearly in the firing line. Whether new positions emerge elsewhere in the economy, as banks and their defenders claim, is a question that will play out over years rather than quarters. The Edge Singapore reported that peers including JPMorgan Chase face similar pressures, with Barclays' investment bank slightly missing expectations on total income of £3.13 billion.
UK budget adds another headache for Barclays
The timing could hardly be worse for Barclays. Britain's budget is due on 28 October, and Finance Minister John Healey has not ruled out higher taxes on banks despite sustained industry lobbying. Lenders warn they already carry comparatively heavy tax burdens and that further levies could constrain lending at a delicate moment for the economy.
For a bank trying to reassure investors about returns, the prospect of a fresh sector tax is an unwelcome complication. Shore Capital described the results as weaker than expected, pointing squarely at the investment bank.
Questions readers are asking
How many jobs is Barclays cutting?
Barclays plans to remove around 5,000 positions by the end of 2026, equal to about 5 per cent of its workforce. About 1,000 of those jobs have already been cut.
How many jobs will NAB cut in Australia?
National Australia Bank has flagged up to 2,500 job losses over the next 12 months, roughly 6 per cent of its workforce, with up to 1,500 positions to go by the end of 2026.
Why are banks cutting jobs now?
Banks cite technology, particularly AI, as a way to reduce fixed costs, along with weaker trading revenue and pressure to improve returns. The Finance Sector Union disputes that job cuts automatically produce simpler operations.