Barclays is reducing its global workforce by about 5,000 employees, equal to nearly 5 per cent of its staff, as part of a major cost cutting programme. Around 1,000 jobs have already gone, and another 4,000 are expected to be cut by the end of this year. While the focus is on its UK retail-banking arm, many back office functions are based in India, meaning a significant share of the reductions will affect Indian operations.
The bank says the changes are part of a modernisation plan, with artificial intelligence playing a growing role in streamlining tasks such as administration and programming. About 60 per cent of the cuts will be in support functions, including developer roles. Barclays expects these measures to deliver £1.1 billion in savings by 2027.
Interestingly, Barclays recently reported a profit of £2.3 billion for the three months to September, slightly below forecasts. Despite strong financial results, unions have criticised the company for using AI as a reason to shed jobs instead of reskilling employees.
Other banks, including HSBC, Standard Chartered and Danske Bank, have also announced AI related job cuts. Analysts note that while banks have invested heavily in technology for years, the scale of automation is now beginning to reduce the need for human roles.
The case highlights the growing challenge of balancing efficiency with employee wellbeing. As AI adoption accelerates, organisations must decide whether to treat technology as a tool to enhance human capability or as a shortcut to reduce headcount. The impact in India, where many support functions are located, underscores how global restructuring decisions directly affect local talent pools.