The British bank Barclays has developed a large-scale workforce reduction plan and is preparing to let go of a significant portion of its global staff. According to reports, Barclays has begun working on a list that will allow it to lay off 5000 employees by the end of the current year, citing the implementation of artificial intelligence (AI), automation, and the need to reduce costs.
Barclays, as a multinational bank and financial services company operating in many countries worldwide, plans to cut about 5% of its global workforce. Approximately 1000 jobs are already at risk, and a list of 4000 employees is being prepared by the end of 2026. About 60% of the planned reductions will affect support functions, including developers.
The reasons for this major reduction, according to Barclays, are related to the transformation of banking personnel under the influence of artificial intelligence (AI), automation, and cost-cutting measures. The bank expects this step to help it save significant funds, modernize technologies, and increase productivity through AI.
Barclays is not alone in this trend of mass layoffs. Previously, Standard Chartered announced plans to cut over 7000 jobs globally by 2030. In March, it was reported that HSBC was considering laying off around 20,000 employees, and in July, VISA announced a reduction of approximately 2600 jobs, which accounts for 7% of its global staff.
These changes in the global banking system indicate the financial services sector's drive to improve productivity through technology investments. Automation may intensify the load on routine administrative processes, while demand shifts towards roles related to technology, cybersecurity, data analysis, and customer interaction. However, existing data does not yet prove that every job position has been eliminated due to AI.
The situation in Indian banks looks different. According to India Today, in the 2025-26 fiscal year, Indian banks HDFC Bank, ICICI Bank, and Axis Bank reduced more than 13,000 employees. Specifically, ICICI Bank cut 6633 employees, HDFC Bank cut 3343, and Axis Bank cut about 3400. Nevertheless, officials explain this not as mass layoffs, but as factors such as employee attrition, selective hiring, workforce reallocation, and increased technological productivity.