While the bank, in its statement today, did not explicitly give AI adoption as the prime driver of the change, the announcement is an example of how this technology affects the industry.

Barclays, which reported a rise in third-quarter profits today, confirmed that it is cutting its staff by around 5,000 jobs. The lender is introducing AI into more of its operations, a pattern seen in other banks. 

The cuts are not being split by business segments, such as wealth management and private banking, this news service understands.

The cuts announcement came as the UK lender reported a 13 per cent year-on-year rise to Q3 attributable profit of £1.646 billion ($2.2 billion). Profit before impairment rose 4 per cent to £2.825 billion. “I am pleased with the ongoing momentum of Barclays' operational and financial performance, with RoTE [return on tangible equity] of 11.7 per cent in Q326 and 13.8 per cent year-to-date," CS Venkatakrishnan, group CEO said. 

"Income of £7.4 billion is up 3 per cent from the same quarter last year…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.

Shares in Barclays are down by around 11 per cent since the start of the year. In 2025, however, they surged almost 80 per cent.

Job reductions
Media reports quoted Barclays as saying that 1,000 posts had already been closed and it expects a further reduction of 4,000 to be complete by the end of this year, amounting to around 5 per cent of its global workforce.

Barclays’ move comes a few days it was revealed that HSBC intends to make large job cuts across its UK wealth management business, including cuts to financial advisors and specialist staff, as the UK/Hong Kong-listed group integrates AI.

“We are positioning Barclays for the future, building the workforce and skills needed to deliver our strategy and meet the evolving needs of our customers and clients,” it said in a statement emailed to this news service. “In doing so we are committed to helping our colleagues develop and build rewarding careers, while meeting the changing needs of customers and clients and ensuring Barclays continues to succeed in the years ahead.”

Reports said the bank's cost reductions are focused on its UK retail bank, but some back-office functions for the UK are done in India, where a significant proportion of the job cuts are expected to fall (source: BBC). The BBC quoted Barclays as saying the changes were the result of an ongoing modernisation plan, with the use of AI being the `icing on the cake' of its strategy.

Commenting on the implications of the Barclays announcement, George Holmes, managing director of business finance specialists Aurora Capital, said smaller businesses risk being left behind.

“Barclays' announcement shows just how quickly AI is changing the way businesses operate. But while major companies have the resources to invest heavily in new technology, smaller businesses are facing a very different reality. Large businesses can spend millions on AI, training and restructuring. For a small business owner, finding the money to invest in new technology while keeping up with everyday costs is a much bigger challenge," he said. 

Wealth and private banking results
Elsewhere in its financial results, Barclays said its private bank and wealth management return on tangible equity fell to 23.8 per cent from 26.4 per cent). Income growth was 10 per cent, reflecting 6 per cent higher client asset and liabilities balances year-on-year. Costs increased by 18 per cent reflecting ongoing investments in the wealth proposition, it said. 

The PBWM division logged an attributable profit in Q3 of £68 million, a decline of 6 per cent on the same quarter a year earlier. In Q3, it booked £600 million in net new assets, slightly below last year's figure. Total assets under management stood at £56.5 billion at the end of September, up from £51.3 billion a year before.

In its 2026 guidance for the entire group, the bank said it is aiming at group return on tangible equity of more than 12 per cent and plans to return at least £10 billion of capital from 2024 to this year, via dividends and share repurchases.