NatWest eliminated about 1,000 jobs in the third quarter as the British bank reduced costs and invested in AI, adding to evidence that automation is reshaping banking employment.
The reductions brought its underlying workforce decline to roughly 1,400 positions in the first nine months of 2026, according to quarterly results released today. Total headcount nevertheless increased by about 800 because the acquisition of Evelyn Partners added around 2,200 employees.
NatWest reported about £420 million ($562.5 million) in gross cost savings for the year to date, supported by operational simplification and technology investments, including AI. Its cost-to-income ratio improved to 45.7%, down 2.1 percentage points from a year earlier.
“Roles are changing. We’ve got new roles that are very much dedicated on AI, and we’ve got other roles that are being changed because of AI,” said Chief Executive Paul Thwaite, according to press reports.
The bank has not disclosed how many positions were eliminated specifically because of AI rather than broader restructuring.
NatWest is testing AI-powered spending insights to help customers manage expenses and has introduced an AI fraud-triage agent for credit card customers.
The restructuring comes amid solid earnings. NatWest reported quarterly operating pretax profit of £2.23 billion ($3 billion), up about 2% from a year earlier, while net interest income increased nearly 9% to £3.56 billion ($4.8 billion).
Last week, Barclays said it was cutting 5,000 jobs as it uses AI and other technology to reduce costs and improve returns.