AI threat hits banking: Barclays to axe 5,000 jobs as automation accelerates

British banking giant Barclays is set to cut about 5,000 jobs as it intensifies efforts to modernise its operations, with artificial intelligence (AI) and automation expected to play an increasing role in its business. The bank said about 1,000 positions had already been eliminated, with a further 4,000 job cuts expected to be completed by the end of 2026. The reductions represent approximately five per cent of its global workforce, reports the BBC.

The cuts are concentrated largely in its UK retail banking operations, although a significant proportion is expected to affect back-office functions in India, where some administrative and operational services for the UK business are performed. Barclays said the reductions form part of an ongoing three-year cost-cutting and modernisation programme. While AI is expected to contribute to future efficiencies, the bank maintained that the technology is not the primary driver of the current restructuring. The scale of the planned redundancies has nevertheless intensified concerns about the potential impact of AI on employment, particularly in the financial services industry, where companies are increasingly investing in technology capable of performing tasks traditionally handled by employees. Administrative work and some programming functions are among the areas where AI tools and automation could reduce the need for human labour. Other financial institutions, including HSBC, Standard Chartered and Danske Bank, have also flagged AI-related job cuts this year, highlighting growing pressure on the banking industry to reassess staffing requirements as technology advances. AJ Bell investment analyst Russ Mould said the issue had become a major talking point but cautioned against assuming that banks were already moving rapidly towards widespread AI deployment. According to him, financial institutions would need to consider the implications for security and customer service before introducing the technology on a large scale to achieve cost savings. “Any company at any time needs to keep on top of its cost base,” Mould said, adding that it would be interesting to see how other banks addressed the issue in their financial results in the coming weeks. However, the planned reductions have drawn criticism from organised labour. Sharon Graham, general secretary of Unite, the union representing banking sector workers, accused Barclays of using AI as a justification for cutting jobs. She said employers should prioritise retraining and upgrading employees’ skills to help them remain in work as technology transforms the workplace. Instead, Graham argued, Barclays was taking a short-term approach by shedding workers rather than preparing them for changing job requirements. The job cuts come as Barclays approaches the end of its three-year cost-reduction programme, which has focused primarily on its UK retail banking business, although its investment banking division has also been affected. Mould also questioned whether the bank’s restructuring efforts were translating into financial performance that met market expectations, despite its increasing focus on technology-driven efficiencies. Barclays reported a profit of £2.3 billion for the three months to September 2026, higher than the figure recorded during the corresponding period a year earlier but slightly below analysts’ forecasts. The bank’s group chief executive, C.S. Venkatakrishnan, said the workforce reductions reflected substantial investments in technology intended to simplify operations and improve business performance. He described AI as an important component of the bank’s future strategy but stressed that its benefits depended on the underlying technological infrastructure being developed. “AI has an important role to play and may have a more important role to play in the future,” he said. “We will employ the AI at scale. But AI is the icing on the cake, not the cake.” Barclays disclosed that approximately 60 per cent of the planned job cuts would affect support functions, including software developers. Will Howlett, a financials analyst at Quilter Cheviot, said the reductions demonstrated how AI and automation could reshape the banking industry over the coming years. He noted that banks had invested heavily in technology for years, but were increasingly approaching a point where those investments could enable them to operate with fewer employees. Barclays expects its efficiency measures to generate an additional £1.1 billion in savings in 2027, as the lender continues to streamline its operations and pursue further cost reductions. The developments underscore a growing challenge for the financial services industry: balancing technology-driven productivity gains and lower operating costs against concerns about job security, employee retraining and the quality of services delivered to customers. Get Latest News Updates Join our Telegram group and receive breaking and trending news updates directly on your phone.

Related PostsBusinessOando, Caverton, others face NGX N123m penalties as experts question deterrent effect of finesBusinessZenith Bank loses N376m to fraud, battles 7,914 customer complaintsBusinessEFCC arrestsAbuja businessman for defrauding foreign investor $120mNews‘Nigeria broke him’: Lawyer accuses Dangote of ruining Portuguese ex-security chief’s lifePublished 9 hours ago on October 17, 2026By centuryheraldEntertainmentBurna Boy, Dangote, Okonjo-Iweala Make Forbes Africa’s 15 Icons Taking Africa GlobalEconomyNo Ban Yet: Minister Says Nigeria Must Build Local Solar Capacity Before Restricting Imports Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

The Nigerian Exchange (NGX) has imposed penalties totalling…

Zenith Bank Plc recorded actual losses of N376…

Economic and Financial Crimes Commission has arrested an…

•Dangotes Portuguese Former Security Chief , Late Jos…

By Emmanuel Kwada Nigerian Grammy-winning singer Burna Boy…

By Emmanuel Kwada The Federal Government has ruled…