Barclays plans 5,000 job cuts as it targets £1.1 billion in savings

The savings plan is bigger than AI

CFO Anna Cross said the job cuts are part of Barclays’ plan to save more than £1.1 billion by 2027. Asked how many were directly linked to AI, Venkatakrishnan pointed to investment in technology and simpler processes as the main sources of efficiency so far. AI matters, he said, and could matter more in future; for now, the bank is introducing it where its infrastructure has already been upgraded.

That distinction matters. Barclays is describing workforce reductions alongside AI-led productivity gains, but not presenting AI as the primary cause of the savings already delivered.

Standard Chartered, another UK-headquartered bank, announced several months ago that it plans to cut more than 7,000 jobs over the next four years as it expands its use of AI. By 2030, it aims to remove about 15% of roles in administrative functions.

Strong results, larger payouts

Barclays reported pre-tax profit of £2.3 billion for the July-to-September quarter, up 12% from £2.1 billion in the same period a year earlier. The bank also announced an additional £500 million for shareholders, which Venkatakrishnan said would be delivered through a share buyback.

Since the start of January, total shareholder returns through buybacks and dividends will reach £2.8 billion.

Profits meet a tax debate

UK finance minister John Healey is due to announce higher taxes for banks in the budget on 28 October. The government of Andy Burnham is looking for revenue to fund support for people facing rising living costs.

Barclays’ UK retail division increased net interest income by 6% to £2 billion. That measure—the difference between interest received on loans and paid on deposits—has become a focus for campaigners seeking a bank tax. It depends on interest rates, which have risen amid higher inflation expectations linked to the war with Iran.

The UK Trades Union Congress says lenders should contribute more while households struggle to pay housing and utility bills. Its general secretary, Paul Nowak, said high profits were not unique to Barclays: all the largest banks were reporting particularly strong results. He argued that some windfall gains came as millions of people struggled with mortgage payments, and that banks should pay a fairer share of tax.

Nowak added that the UK’s four largest banks had made £200 billion in profits since 2021, as the finance minister faced pressure to fund support for households and businesses ahead of an expected jump in energy bills.

I think the announcement leaves the key point unresolved: how much of Barclays’ planned savings comes from AI, and how much from the technology upgrades and process changes it says are already doing most of the work. That gap matters as the bank prepares to cut jobs while sending more money to shareholders—and as ministers weigh whether its profits warrant higher taxes.