Barclays to Cut 5,000 Jobs as Artificial Intelligence Transforms Banking Employment Despite Rising Profits

Barclays, one of Britain's biggest banks, plans to cut about 5,000 jobs around the world as artificial intelligence (AI) and automated technology change how banks work. The announcement comes even though Barclays made £2.3 billion in profit during the latest quarter.

Thousands of bank workers now face uncertainty after Barclays announced plans to cut about 5,000 jobs during 2026. The decision shows how artificial intelligence is changing jobs across the banking and financial services industry.

The British bank confirmed that the cuts will affect about 5% of its workers worldwide. The changes are part of a larger plan to make the bank run more efficiently and spend less money.

The announcement comes even though Barclays made about £2.3 billion in profit before tax during the third quarter of the year. This was 12% more than during the same period last year.

According to a Reuters report published on 22 October 2026, about 1,000 jobs have already been cut. Another 4,000 jobs are expected to go before the end of the year.

The decision raises important questions about whether banking jobs are safe, how new technology is changing work, and what the future holds for people working in Britain's banks.

The planned 5,000 job cuts affect Barclays workers around the world. This does not mean that 5,000 jobs in the UK have definitely been selected for cuts.

Even so, the news is especially important for British bank workers because banks are spending more money on automated systems and artificial intelligence.

How Artificial Intelligence Is Changing Banking

Barclays says that investing in technology and helping employees get more work done are important parts of its plan to change how the bank operates.

The bank wants to lower its regular running costs by using better systems and more artificial intelligence in its daily work.

About 60% of the planned job cuts are expected to affect teams that support the bank's main activities. These include some jobs in software development.

This is important because technology jobs were once seen as some of the jobs most likely to grow as businesses used more digital technology.

But automated tools are now getting better at writing software, handling information and doing office tasks. This is changing how many workers banks need and what kinds of jobs they do.

The announcement is another sign that artificial intelligence is changing more than simple office jobs. It is also affecting some jobs that need specialist technical skills.

Technology can help people get more work done and create new kinds of jobs. But it can also mean that companies need fewer people in jobs that already exist.

For people working in banking, financial services and other office jobs, learning to work with new technology is becoming more important when planning their careers.

Barclays Makes £2.3 Billion in Profit While Planning Job Cuts

The planned job cuts stand out because Barclays is still making a lot of money.

The bank reported about £2.3 billion in profit before tax during the third quarter. That was 12% more than a year earlier.

However, the profit was lower than financial experts had expected. One reason was that the bank earned less money from trading fixed-income products, such as bonds.

Barclays' investment banking division, which provides financial services to businesses and investors, earned about £3.1 billion during the quarter. This was less than analysts had predicted.

Money earned from fixed-income trading fell by 19%, while money earned from trading shares rose by 47%.

These different results show that some parts of a large bank can perform much better than others.

Barclays also reported £201 million in costs linked to changes it was making to the way the business operates during the quarter.

The bank hopes to improve its financial results by spending less money, using more automated technology and changing how its teams and services are organised.

For workers, however, the news highlights an important worry: even companies that make good profits may cut jobs when technology allows them to organise work differently.

Software Developers and Support Workers Are Among Those Affected

One of the most important parts of the announcement is how it could affect people working in technology and office support jobs.

Barclays' finance director, Anna Cross, confirmed that about 60% of the planned cuts involve support teams, including software developers.

This suggests that Barclays believes better technology will mean it needs fewer workers or resources for some of the jobs it currently carries out.

The changes also raise questions about which skills people will need to work in financial services in the future.

People who develop software, manage office work, help run daily operations, prepare reports or provide other support may increasingly need to learn how to use systems that include artificial intelligence.

However, bringing in new technology does not always mean that every job in an affected team will disappear.

Some workers may be able to move to other jobs, learn new skills or take on work that involves checking and managing automated systems.

Whether these options are available will depend on each employer and how it plans changes to its workforce.

Growing Worries About AI and Job Security

The Barclays announcement is part of a bigger discussion about how artificial intelligence could affect jobs in Britain.

Companies in banking, technology, shops and professional services are looking at how automated systems can help their workers get more done.

In some industries, this could create new jobs involving data analysis, cybersecurity, checking software systems and helping businesses introduce artificial intelligence.

In other industries, automation could mean that fewer workers are needed to do jobs that already exist.

This brings both new opportunities and possible problems for workers.

The Government's AI Opportunities Action Plan explains its goal of helping more businesses and industries use artificial intelligence.

However, the effect on jobs will depend on how companies introduce these systems and whether workers get proper chances to learn new skills.

Our earlier article about Rolls-Royce's long-term investment in UK manufacturing jobs showed how spending money on new technology can also help create and support skilled jobs and help industries grow.

These different examples show that new technology does not affect jobs in the same way in every industry.

For British workers, having access to useful training and learning skills they can use in different jobs will become more important.

What Rights Do Workers Have When Their Jobs May Be Cut?

Workers affected by changes to a business should know that employers must follow employment laws when making people redundant. Redundancy means losing a job because an employer no longer needs that job to be done.

The rights each worker has depend on their situation, how long they have worked for the employer, what their employment contract says and why their employer wants to end their job.

When employers plan redundancies, they should look at whether other suitable jobs are available. They should also use a fair process to decide which jobs may be cut and speak with affected workers about the plans.

Workers who have been employed for long enough may have a legal right to redundancy pay.

The Government's official redundancy guidance explains workers' rights to redundancy pay, how much notice they should receive and how employers should discuss planned job cuts with them.

Workers can also read Acas guidance on redundancy to understand the steps employers should follow and what their responsibilities are.

Importantly, workers should not assume that an announcement about job cuts automatically means they will lose their jobs.

Depending on the situation, workers may be offered another job with the employer, moved to a different team or given the option to choose voluntary redundancy.

Anyone told that their job might be cut should read the information from their employer carefully and get suitable advice before making major decisions.

More information about workplace issues is available through our employment help and guidance resources.

Why Employers Need to Talk With Workers About Job Cuts

When companies plan to cut large numbers of jobs, workers can face a lot of uncertainty.

They may worry about how they will pay their bills, keep up with mortgage payments, support their families or find another job.

Employers should therefore explain planned changes clearly and give workers a proper chance to understand how the decisions could affect them.

In Great Britain, employers planning to cut 20 or more jobs at one workplace within 90 days may have a legal duty to consult workers as a group.

The exact rules depend on the situation and how many jobs the employer plans to cut.

The Government's guidance on making staff redundant explains these consultation rules and what employers must do.

Workers should also be told how the employer will decide which jobs to cut and whether other suitable jobs are available.

Consultation should not just mean telling workers about decisions that have already been made.

It should give workers and employers a chance to talk about the plans, look at other options and find ways to make the changes less harmful for affected employees.

Could Learning New Skills Help Workers Deal With AI?

One important lesson from the Barclays announcement is that helping workers develop their skills matters.

As more businesses start using artificial intelligence, workers may benefit from learning how automated systems work and how to use them in their current jobs.

Skills in understanding data, protecting computer systems from attacks, running digital services, working with customers and following financial rules may continue to be useful in the financial services industry.

However, workers should not have to take all the responsibility for keeping up with new technology on their own.

Employers making big changes to how they operate should think about how they can help workers through training, career support and chances to move into different jobs.

The Government provides information about training and career opportunities through the National Careers Service.

For workers whose jobs are changing, useful training can improve their chances of finding or keeping work and give them more options as the job market changes.

Banking Jobs Are Going Through Major Changes

The Barclays announcement shows that jobs are changing for reasons beyond the usual changes in the economy.

Artificial intelligence, automated technology and changes to how companies are organised are playing a bigger part in decisions about how many workers businesses need.

Barclays' plan to cut about 5,000 jobs shows how companies can use better technology to lower their costs, even when they are still making profits.

For workers who may lose their jobs, the most important things right now are understanding how the job cuts will happen, knowing and protecting their employment rights, and looking at other options.

For workers across Britain, the news shows why learning new skills and keeping up with what employers need are becoming more important.

It also raises a bigger question about how businesses can get more work done while still treating their employees fairly and meeting their responsibilities to them.

New technology should help the economy grow, bring new ideas and create better jobs. As artificial intelligence continues to change workplaces across Britain, it will be important to make sure workers are treated fairly, can get the training they need and have real chances to build their careers.