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). According to Barclays’ third-quarter earnings statement, the bank is focusing on simplifying its organisation and making its operations more efficient.
Barclays job cuts: 60% of layoffs to hit support teams
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. The remaining cuts are expected to take place before the end of the year. According to Bloomberg, Barclays employed around 93,000 people globally at the end of 2025.
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. “But AI is the icing on the cake, not the cake.” Venkatakrishnan made these remarks during a call with reporters, according to Bloomberg.
Barclays Q3 results miss estimates
The announcement came as Barclays reported its third-quarter earnings on Thursday. 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.
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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. The result was below analysts’ expectations compiled by Bloomberg. According to the bank, 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.
Barclays bond trading revenue falls 19%
Venkatakrishnan described the investment bank’s FICC performance as “somewhat disappointing” during a call with reporters. The weakness in bond trading reduced the impact of a strong performance in equities, where revenue increased significantly during the 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.
JPMorgan, Goldman Sachs face bond trading pressure
The weakness in fixed-income trading was not limited to Barclays. Other major US banks, including JPMorgan Chase, Goldman Sachs and Bank of America, also reported declines in fixed-income trading revenue. 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 Q3 profit rises 12% to £2.3 billion
Barclays’ investment bank reported total income of £3.13 billion in the third quarter, slightly below expectations. The bank’s overall group income also came in below forecasts, despite an increase in pre-tax profit. According to CNBC, group income stood at £7.4 billion, compared with analysts’ estimate of £7.61 billion.
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. However, the bank’s performance varied across its businesses, with weakness in investment banking affecting the overall results. According to CNBC, the bank’s net interest income remained broadly unchanged at £3.91 billion.
Barclays cuts costs by £201 million
Barclays has been under pressure to control expenses after reporting higher-than-expected costs in its half-year results. The bank had announced a fresh cost-cutting programme in February, and investors have been watching whether it can deliver the promised savings. According to Bloomberg, the latest job reductions form part of its broader effort to improve efficiency and manage spending.
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. The additional savings are part of Barclays’ continuing drive to lower expenses and create more room for investment.
Venkatakrishnan said Barclays was on track to meet its existing targets for 2026 and remained committed to its longer-term plans. “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 the bank remained confident in its 2028 targets. Barclays shares fell after the results were announced. The stock traded as much as 2.4% lower as the London market opened.