Barclays told employees it is targeting a 5% reduction in headcount in 2026 and is committed to eliminating 5,000 positions. That total includes 1,000 roles already removed in the first half.
The bank said it plans to recognize costs tied to the overhaul before year end and estimated about £600 million in 2026 expenses, which it described as roughly twice an earlier estimate. The company framed the cuts as part of this year's structural cost actions, outlined in an earnings presentation published Thursday.
Management expects around 60% of the job reductions to fall in support functions, and it specifically cited developers. Barclays added that the cuts would occur over the next few months.
People familiar with the situation said some staff are uneasy about the unclear timing for the reductions and want information on the regions and departments likely to be impacted.
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During a Thursday internal town hall, CEO CS Venkatakrishnan said the bank will prioritize filling vacancies with existing colleagues instead of hiring from outside. He also said some employees impacted by the cuts will be able to apply for open jobs, and that Barclays will invest in retention, roll out projects in the coming months to support internal moves, and help colleagues build new skill sets.
In a memo last week, the executive committee said Barclays would put around £150 million toward skills by 2030 and would give current employees priority for advertised roles. The memo also said the bank is committing to 2,800 places in 2027 early-career programs aimed at graduates, apprentices and interns. "We will stand by colleagues, helping you prepare, adapt and make informed choices about your career," the committee said.
A spokesperson added, "We are committed to helping our colleagues develop and build rewarding careers, while meeting the changing needs of customers and clients and ensuring Barclays continues to succeed in the years ahead." The bank said it is also deploying technology upgrades, including AI tools, to streamline operations and contain costs.
Barclays is spending now to shrink its expense base later. Recognizing the costs this year while pushing redeployment and skills investment suggests an attempt to cut run-rate costs without draining institutional knowledge. For your portfolio, the key watch items are execution on the next few months of reductions, whether internal mobility limits severance outlays, and if tech upgrades deliver the promised efficiency gains.
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