Barclays plans to cut 5,000 jobs by the end of 2026 to save costs and use technology. While global banks like Standard Chartered also started job cuts, Indian lenders show a different trend. HDFC, ICICI, and Axis Bank got smaller workforces, but said this happened due to attrition and productivity.
Barclays' plan to cut around 5,000 jobs by the end of 2026 has put the spotlight on how artificial intelligence (AI), automation and cost-cutting are changing the banking workforce. For India, the announcement comes amid a series of developments involving global financial companies and domestic lenders, although not all workforce reductions are layoffs or directly attributable to AI.
The British bank plans to eliminate around 5% of its global workforce, with approximately 1,000 positions already cut and another 4,000 expected to go by the end of the year. Around 60% of the planned reductions will affect support functions, including developers.
Barclays has linked the move to wider cost-saving and technology-modernisation efforts, with AI expected to contribute to productivity gains.
ARE GLOBAL BANKS PLANNING WORKFORCE REDUCTIONS?
Barclays is not the only international lender announcing cuts. In May, Standard Chartered said it planned to eliminate more than 7,000 jobs globally by 2030, mainly from corporate and support functions. The bank explicitly linked the reductions to automation and the growing use of AI, while saying some employees would be reskilled.
In March, HSBC was reported to be considering cutting as many as 20,000 roles, potentially affecting middle- and back-office functions. However, the proposal was still under discussion at the time and had not been finalised. It should therefore be treated as a potential workforce reduction, not a confirmed round of layoffs.
In July, payments company Visa announced plans to cut around 2,600 jobs, or 7% of its global workforce. Employees in India received layoff emails, although the company did not disclose how many Indian workers were affected.
Visa's move is relevant to the wider financial-services sector, but it is not a bank layoff. Nor can the entire reduction be attributed to AI, given the broader business and efficiency considerations behind restructuring.
THE INDIAN STORY
Domestic lenders present a different picture. HDFC Bank, ICICI Bank and Axis Bank ended the 2025-26 financial year with more than 13,000 fewer employees combined, according to India Today Business.
ICICI Bank's workforce declined by 6,633 employees, HDFC Bank's by 3,343, and Axis Bank's by around 3,400. However, executives attributed the changes to factors including attrition, selective hiring, redeployment and technology-led productivity, rather than broad-based layoffs.
The distinction matters. Banks can reduce employee numbers by not replacing workers who leave or by moving staff into other functions, without dismissing thousands of employees.
BANKING JOBS ARE CHANGING, NOT DISAPPEARING UNIFORMLY
These developments point to a financial-services sector trying to improve productivity while investing in technology. Routine processing and administrative work may face greater pressure from automation, while demand can shift towards technology, cybersecurity, data analysis and customer-facing roles.
However, the available figures do not establish that AI caused every job reduction. Barclays and Standard Chartered have announced cuts linked partly to technology-led change; HSBC's reported plan remained under consideration; Visa announced layoffs; and India's largest private banks reduced headcount through different workforce measures.
For India, the central concern is how employees adapt as banks reorganise operations and change hiring priorities. The sector may continue to grow, but its workforce requirements could look increasingly different from those of the past.