Barclays is planning to cut around 5,000 jobs by the end of 2026 as the banking group increases its use of artificial intelligence (AI) and continues efforts to modernise its operations.

The reductions represent approximately 5% of its global workforce, with around 1,000 roles already eliminated during the first half of the year and a further 4,000 expected to go before December ends.

The majority of cuts will affect operational and functional positions, with approximately 60% involving support functions, including software development roles.

Speaking during the bank’s third-quarter results presentation, Barclays Group Finance Director Anna Cross said the reductions included “fewer developers as AI makes our people more productive.”

Cross also highlighted improvements in customer-facing technology, which have reduced call centre volumes by 10% over the past year, alongside changes that have reduced employee numbers per branch by a similar proportion.

The announcement comes as Barclays approaches the end of a three-year transformation programme focused on reducing costs, improving efficiency and investing in technology.

Group Chief Executive CS Venkatakrishnan emphasised that AI forms part of a broader modernisation strategy, describing the technology as “the icing on the cake, not the cake.”

Barclays expects to generate more than £1.1bn in gross efficiency savings during 2027 as a result of its ongoing restructuring and technology investments.

The cuts were announced alongside the bank’s third-quarter financial results, which showed pre-tax profits rising 12% year-on-year to £2.3bn. Barclays also announced a further £500m share buyback.

However, the proposals have attracted criticism from trade union Unite, which argues that employers should prioritise retraining workers rather than eliminating roles.

Unite General Secretary Sharon Graham said: “The company is using AI as an excuse to discard its loyal and long-suffering workforce.”

Barclays, which operates a major campus in Glasgow, has not provided a regional breakdown of the planned reductions, leaving the potential impact on its Scottish workforce unclear.