Barclays announced a reduction of 5,000 positions, representing roughly five percent of its 93,000-strong global employee base. The plan follows an earlier reduction of 1,000 staff members that the bank implemented earlier this year. Executives said the cuts form part of a broader cost-saving programme aimed at streamlining operations and improving profitability across its retail, corporate and investment divisions.
Chief executive CS Venkatakrishnan told reporters that deep investment in technology and process simplification are delivering the bulk of recent efficiency gains. He described artificial intelligence as an “icing on the cake” for the bank’s modernization agenda and suggested that AI could assume an even larger role in future operations.
Barclays’ announcement arrives shortly after another UK-headquartered lender, Standard Chartered, disclosed plans to eliminate more than 7,000 jobs over the next four years. The bank aims to cut roughly 15 percent of its back-office workforce by 2030 as it accelerates the deployment of artificial intelligence across its operations.
The bank also revealed a further £500 million distribution to investors, raising the total amount returned to shareholders since January to £2.8 billion through a combination of share buybacks and dividend payments. This move is presented as a continuation of Barclays’ commitment to delivering value to its equity holders amid a tightening cost base.
Barclays reported pre-tax earnings of £2.3 billion for the July-September quarter, a 12 percent increase over the £2.1 billion recorded in the same period a year earlier. The uplift was driven by higher net interest income and cost efficiencies, reinforcing the bank’s outlook for continued profit growth despite a challenging macroeconomic environment.
The robust profit figures are likely to be cited in the upcoming budget as the government seeks additional revenue to fund cost-of-living assistance programmes. Treasury officials have indicated that a higher bank tax could be on the agenda, a prospect that aligns with ongoing campaigns from trade unions demanding greater contributions from financial institutions.
When questioned about the possibility of shifting assets or investment out of the United Kingdom in response to higher levies, Venkatakrishnan said Barclays is capable of absorbing any additional charges. He acknowledged the chancellor’s need to balance multiple considerations while reaffirming the bank’s commitment to growth within the UK market.
Net interest income at the bank’s UK retail division rose six percent to £2 billion, a metric that has become a focal point for the Trades Union Congress’s push for a higher bank tax. Campaigners argue that lenders must shoulder a larger share of the fiscal burden as households contend with rising living costs.