Europe’s banking sector is about to get a tough lesson in efficiency. According to a new analysis from Morgan Stanley informed According to the Financial Times, more than 200,000 European banking jobs could disappear by 2030 as lenders lean toward AI and close physical branches. This is approximately 10% of the workforce of 35 major banks.
The bloodshed will hit hardest in back-office operations, risk management and compliance, the uncharacteristic guts of banking where algorithms are believed to be able to tear through spreadsheets faster and more effectively than humans. Banks are salivating over projected efficiency gains of 30%, according to a Morgan Stanley report.
Downsizing is not limited to Europe. Goldman Sachs in October warned U.S. employers of job cuts and a hiring freeze through the end of 2025 as part of an AI push called “OneGS 3.0,” which is targeting everything from client onboarding to regulatory reporting.
Some institutions are already axing themselves. Dutch lender ABN AMRO plans to cut a fifth of its staff by 2028, while the CEO of Societe Generale has declared that “nothing is sacred.” Still, some European banking leaders are urging caution, with a JPMorgan Chase executive telling the FT that if junior bankers never learn the fundamentals, it could hobble the industry.
