More than 200,000 jobs could be eliminated across Europe’s banking sector by 2030 as lenders increase their use of artificial intelligence and reduce their reliance on physical branches, according to a Morgan Stanley analysis cited by the Financial Times.
Morgan Stanley Forecast On Workforce Reduction
The analysis estimates that job losses would account for roughly 10% of the workforce across 35 major European banks. The report links the projected reductions to efforts to improve efficiency through automation and digitalisation, particularly as banks look to lower operating costs and streamline internal processes.
Morgan Stanley’s analysis suggests banks are targeting efficiency improvements of around 30% through wider deployment of AI systems.
Roles Most Affected By Automation
The expected job reductions are concentrated in back-office functions, including operations, risk management, and compliance. These areas involve large volumes of data processing and reporting, which banks believe can increasingly be handled by algorithms faster and at lower cost than manual workflows.
Similar Trends Outside Europe
The shift toward automation is not limited to European lenders. In the United States, Goldman Sachs warned employees in October about upcoming job cuts and implemented a hiring freeze through the end of 2025. The measures are part of an internal AI initiative known as OneGS 3.0, which targets functions such as client onboarding and regulatory reporting.
Early Moves By European Lenders
Some European banks have already announced concrete workforce reductions. Dutch lender ABN Amro has said it plans to cut around 20% of its staff by 2028. At Société Générale, the chief executive has publicly stated that no area of the business is exempt from review as the bank pursues efficiency improvements.
Caution From Industry Leaders
Despite the push toward automation, some banking executives have urged restraint. A senior executive at JPMorgan Chase told the Financial Times that removing too many junior roles could have long-term consequences, particularly if new entrants to the industry no longer gain foundational experience in banking operations.
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