Barclays to cut 5,000 jobs as AI push fuels cost-cutting and workplace tensions

Barclays plans to cut around 5,000 jobs as the British bank expands its use of artificial intelligence (AI) to improve efficiency and reduce costs, while facing growing employee opposition to tighter return-to-office requirements.

The London-based lender announced the planned job cuts on October 22, which account for around 5% of its workforce. 

About 60% of the reductions will affect support functions, including software developers, according to a company presentation.

The announcement came as Barclays reported a 12% increase in quarterly profit, although earnings fell short of analysts’ expectations. The bank cited “organisational simplification and technology change efficiency” as part of its efforts to improve productivity through AI.

Chief executive C.S. Venkatakrishnan said AI would play an important role in the bank’s operations as it planned to deploy the technology at scale. However, he described AI as “the icing on the cake, not the cake”.

Barclays has already eliminated 1,000 of the planned roles and expects its efficiency measures to generate savings of more than £1.1 billion in 2027.

The restructuring comes amid wider concerns about AI-driven job displacement across financial services. Standard Chartered announced plans in May to eliminate more than 7,000 jobs over four years. In the United States, employers cited AI more than 120,000 times as a reason for workforce reductions this year, accounting for more than a fifth of all announced job cuts, according to research firm Challenger, Gray & Christmas.

Alongside the restructuring, Barclays is facing opposition from employees over plans to increase minimum office attendance requirements, with trade union Unite calling for additional compensation and greater flexibility.

According to the Financial Times, the revised policy requires affected employees to work from the office at least three days a week, up from two days for many full-time staff. Senior leaders, including managing directors, will be expected to attend office locations at least four days a week.

The policy took effect in October 2026 and is expected to affect around half of Barclays’ 45,000 UK employees, according to earlier reporting by The Banker. Operations and technology teams are among the functions likely to be affected.

Unite, which represents nearly 80% of Barclays’ UK employees, has urged the bank to pause implementation while discussions continue. The union has encouraged employees to sign an open letter opposing the changes, with national officer Rick Coyle telling the Financial Times that thousands of staff had already signed it.

The union is seeking a one-off payment to help cover additional commuting and workplace expenses, alongside exemptions for employees with longer journeys and greater flexibility for staff with caring responsibilities. Its requests include exemptions for employees whose commutes exceed 40 minutes or 35 miles each way, as well as accommodation for those who need to travel outside peak hours.

According to Unite, 94% of respondents to its latest employee survey wanted the changes delayed until discussions with the union had concluded.

The union has argued that the revised requirements could increase commuting costs and travel time, affecting employees’ work-life balance. It has called for workplace policy changes to be evidence-based and to account for their impact on wellbeing, productivity and job performance.

Barclays said it continues to engage with Unite over the planned changes but has not agreed to the union’s demands.

The bank said it recognises the benefits of balancing workplace flexibility with in-person collaboration. It added that minimum office attendance requirements vary across business areas according to operational needs and the nature of individual roles.

Most employees affected by the policy are expected to align with the bank’s three-day office attendance approach, while senior leaders will spend an additional day on-site to support collaboration, decision-making and leadership visibility.

The move places Barclays among major financial institutions tightening hybrid working arrangements following the widespread adoption of remote and flexible work during the Covid-19 pandemic. HSBC and Santander have also strengthened office attendance expectations, according to The Banker.

For Barclays, the twin priorities of technology-led cost savings and increased in-person attendance highlight the competing pressures facing employers as they reshape their workforces: improving operational efficiency while managing employee expectations around job security, flexibility and working conditions.