European Banking Sector Braces for Major Job Cuts as AI Integration Accelerates
A recent analysis by Morgan Stanley, shared by the Financial Times, predicts a significant transformation within Europe’s banking industry, with over 200,000 jobs potentially eliminated by 2030 due to the increasing adoption of artificial intelligence (AI) and the closure of physical branches. This figure represents nearly 10% of the workforce across 35 prominent banks.
The most substantial impact is expected in back-office operations, risk management, and compliance—areas where AI is anticipated to perform complex tasks more swiftly and efficiently than human employees. Banks are eager to realize projected efficiency improvements of up to 30%, as highlighted in the Morgan Stanley report.
This trend is not exclusive to Europe. In the United States, Goldman Sachs has indicated potential layoffs and a hiring freeze lasting until the end of 2025, a move part of their AI initiative known as “OneGS 3.0,” which targets several operational areas including client onboarding and regulatory compliance.
Some banks have already begun implementing these changes. For example, Dutch bank ABN Amro plans to reduce its workforce by 20% by 2028, while Société Générale’s CEO has remarked that “nothing is sacred” in the face of such transformations. However, a few leaders in the industry advocate for a more measured approach, with a JPMorgan Chase executive warning that neglecting the foundational skills of junior bankers could pose long-term challenges for the sector.
