European banks plan to cut 200,000 jobs as AI takes hold
European banks plan to cut 200,000 jobs as AI takes hold
In Brief
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Europe’s banking sector is about to get a tough lesson about efficiency. According to a new Morgan Stanley analysis reported by the Financial Times, more than 200,000 European banking jobs could vanish by 2030 as lenders lean into AI and shutter physical branches. That’s roughly 10% of the workforce at 35 major banks.
The bloodletting will hit hardest in back-office operations, risk management, and compliance, the unglamorous guts of banking where algorithms are believed capable of tearing through spreadsheets faster and more effectively than humans. Banks are salivating over projected efficiency gains of 30%, according to the Morgan Stanley report.
The downsizing isn’t confined to Europe. Goldman Sachs had warned U.S. employees in October of job cuts and a hiring freeze through the end of 2025 as part of an AI push dubbed “OneGS 3.0” that’s targeting everything from client onboarding to regulatory reporting.
Some institutions are already swinging the axe. Dutch lender ABN Amro plans to cut a fifth of its staff by 2028, while Société Générale’s CEO has declared “nothing is sacred.” Still, some European banking leaders are urging caution, with a JPMorgan Chase exec telling the FT that if junior bankers never learn the fundamentals, it could come back to haunt the industry.
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