Barclays expects around 5,000 job cuts by end of 2026
The British lender reported a 12% rise in quarterly pre-tax profit, but weaker fixed income trading left earnings below analysts’ forecasts.
Barclays said it expects to eliminate around 5,000 jobs by the end of 2026, equivalent to roughly 5% of its workforce, as technology allows it to maintain its workload with fewer employees. The British bank announced the reductions alongside its third-quarter results.
Pre-tax profit reached £2.3 billion for the quarter ending in September, up 12% from a year earlier. Earnings nevertheless fell short of analysts’ forecasts as fixed income trading income dropped 19% to £1 billion. Barclays shares declined 2.5% during early London trading.
About 1,000 positions have already been eliminated, with another 4,000 due to go before December ends. Operational and support jobs will bear most of the reductions. Reuters reported that chief financial officer Anna Cross put the share affecting support functions, including software developers, at about 60%.
Chief executive CS Venkatakrishnan attributed the reductions to technology investment over several years, which Barclays plans to keep making. He played down artificial intelligence’s contribution so far. Most of the savings come from the UK retail bank, with the investment bank also contributing.
Barclays recorded about £200 million in third-quarter structural cost actions, within roughly £600 million for the full year. The annual figure is about twice its previous plan. The bank also expects a further £300 million in savings during the final three months of 2026.
The lender is nearing completion of a three-year program centered on reducing costs and investing in technology.
