By Barclays is cutting about 5,000 jobs globally, nearly 5 per cent of its workforce, as part of a cost-cutting programme that will see around 1,000 roles eliminated in India, according to HRKatha. Around 1,000 positions have already gone, with another 4,000 expected to be cut by the end of this year. About 60 per cent of the reductions will fall in support functions, including developer roles.
The bank says the restructuring is part of a modernisation plan in which artificial intelligence plays a growing role in streamlining administration and programming. Barclays expects the measures to deliver £1.1 billion in savings by 2027. Unions have criticised the move, and other banks including HSBC, Standard Chartered and Danske Bank have announced similar AI-related job cuts.
India is both a loser and a winner in this restructuring
The headline figure of 1,000 job cuts in India needs careful reading. Barclays employs more than 30,000 people in India across Mumbai and New Delhi, according to People Matters. The bank has been shifting roles from London to India for years, and that trend is continuing even as some India-based positions are eliminated.
The two developments are not contradictory. Barclays is cutting support function roles globally, including developer jobs in India, while simultaneously relocating certain functions from the UK to India because wage levels are lower. People Matters reported in February 2026 that Barclays planned to move advertising and content roles from London to India, putting up to 50 marketing jobs at risk. The London-based content writing team of around 20 staff at Canary Wharf was told in July 2025 that the transition would complete by the end of August 2026. The new India team will be larger than the London team but with lower overall staffing costs, and will use AI to generate marketing materials.
So India is absorbing relocated roles while also losing some existing positions. HR and payroll teams in India should not assume the 1,000 figure represents a simple net reduction in the country’s Barclays headcount. The bank is restructuring its geographic and functional mix, not simply shrinking in one market.
What the cuts mean for HR and payroll teams
For HR leaders at Barclays India, the immediate workload involves managing exits across multiple functions while simultaneously onboarding new hires for relocated roles. That is a difficult dual mandate. Severance terms, notice periods and consultation requirements will vary by location and employment contract. In India, termination procedures are governed by the Industrial Disputes Act for workmen and by contract terms for non-workmen employees. HR teams should confirm the applicable rules for each affected employee category rather than applying a single process.
Payroll teams face a different challenge. The cuts span multiple countries, and the relocation of roles from London to India creates a payroll migration exercise. Employees moving from the UK to India, or being replaced by India-based hires, trigger changes in tax residency, social security contributions and payroll compliance. Barclays will need to manage final payments for departing UK staff, including any redundancy payments, while setting up new payroll records for India-based replacements.
The AI angle adds another layer. As Barclays automates administration and programming tasks, the remaining roles will require different skills. HR teams should expect requests for retraining programmes and revised job descriptions. The bank has not publicly detailed which AI tools it is using or how productivity gains are measured, but the direction is clear: fewer people doing routine support work, with AI handling a growing share of tasks.
The wider industry pattern
Barclays is not alone. HSBC, Standard Chartered and Danske Bank have all announced AI-related job cuts, according to HRKatha. The pattern is consistent: banks are reducing support function headcount in high-cost locations, relocating some roles to lower-cost markets like India, and using AI to automate routine work in both locations.
For HR and payroll professionals in India, this creates a mixed outlook. India remains a net beneficiary of offshoring in banking, but the nature of the work is changing. Roles that involve routine administration, basic programming and content generation are most exposed to automation. Roles that require regulatory knowledge, client relationship management and complex problem-solving are more resilient.
The People Matters report noted that some London marketing staff were laid off last year while others were redeployed internally. That suggests Barclays is using a combination of voluntary exits, redeployment and compulsory redundancies. HR teams in India should expect similar flexibility in how the 1,000 cuts are implemented.
What to watch next
The remaining 4,000 job cuts are expected by the end of this year. Barclays reported a profit of £2.3 billion for the three months to September, slightly below forecasts, and the bank is under pressure to improve efficiency. The £1.1 billion savings target by 2027 gives management a clear incentive to move quickly.
For HR and payroll readers in India, the practical steps are clear. Review which functions are most exposed to AI automation in your own organisation. Map the skills that will be needed as routine work is automated. And prepare for a period in which job cuts and hiring happen simultaneously, with the net effect varying by function and location.
Sources: HRKatha
Photo: Bogdanov 001 by Ivan Bogdanov, Public domain
