A Morgan Stanley analysis, reported by the Financial Times, projects more than 200,000 European banking jobs could disappear by 2030 as lenders adopt artificial intelligence and close physical branches. This figure represents roughly 10% of the workforce at 35 major banks.
The job reductions target back-office operations, risk management, and compliance functions. Algorithms in these areas process spreadsheets faster and more effectively than humans. Banks project efficiency gains of 30% from AI implementation, according to the Morgan Stanley report.
The trend extends beyond Europe. In October, Goldman Sachs informed U.S. employees of impending job cuts and a hiring freeze through the end of 2025. These measures form part of the bank’s “OneGS 3.0” AI initiative, which addresses processes from client onboarding to regulatory reporting.
Several institutions have initiated staff reductions. Dutch lender ABN Amro announced plans to eliminate a fifth of its workforce by 2028. Société Générale’s CEO stated that “nothing is sacred,” indicating readiness for substantial changes.
Some leaders express reservations about rapid automation. A JPMorgan Chase executive told the Financial Times that if junior bankers never learn the fundamentals, it could come back to haunt the industry.
