Europe’s banking industry is heading toward a major workforce shake-up as artificial intelligence and automation accelerate cost-cutting efforts. According to a Morgan Stanley analysis cited by the Financial Times, more than 200,000 jobs could be eliminated across European banks by 2030 as lenders increasingly rely on AI and continue to close physical branches. The figure represents close to 10% of the combined workforce at 35 of the region’s largest banks, underlining the scale of the transformation now underway.
The impact is expected to be most severe in back-office functions, risk management, and compliance—areas that form the operational backbone of banking but are now prime targets for automation. These roles involve data-heavy, repetitive processes where algorithms can process information faster and with fewer errors than human teams. Morgan Stanley estimates that banks could unlock efficiency improvements of around 30% by deploying AI more aggressively across these functions, making workforce reductions a tempting lever for improving profitability.
While the report focuses on Europe, similar dynamics are playing out globally. In the United States, Goldman Sachs warned employees as early as October about upcoming job cuts and a hiring freeze extending through the end of 2025. These measures are part of the firm’s AI-driven transformation initiative, “OneGS 3.0,” which aims to automate and streamline operations ranging from client onboarding to regulatory reporting.
Several European lenders have already begun acting on these strategies. Dutch bank ABN Amro has announced plans to reduce its workforce by around 20% by 2028, signaling a deep structural shift rather than short-term belt-tightening. At France’s Société Générale, the tone has been equally stark, with the bank’s chief executive declaring that “nothing is sacred” when it comes to efficiency and restructuring.
However, not all industry leaders are convinced that aggressive cuts are risk-free. Some senior executives have cautioned that over-reliance on automation could erode critical skills over time. A JPMorgan Chase executive told the Financial Times that if junior bankers are no longer trained in core fundamentals, the industry may pay the price later in reduced expertise and resilience.
As AI-driven transformation gathers pace, Europe’s banks face a delicate balancing act: capturing efficiency gains while preserving the human knowledge that underpins long-term stability.
