The European banking sector is about to learn a painful lesson in efficiency. More than 200,000 European banking jobs could disappear by 2030 as lenders focus on artificial intelligence and close physical branches, according to a new Morgan Stanley analysis in the “Financial Times.” That’s about 10% of the workforce at 35 major banks.
The bloodbath will hit back office operations, risk management, and compliance the hardest – unattractive areas of banking where algorithms are thought to be able to process spreadsheets faster and more efficiently than humans. A Morgan Stanley report says banks are bracing for a projected 30% efficiency boost.
The cuts aren’t limited to Europe. Goldman Sachs warned U.S. employees in October of job cuts and a hiring freeze through the end of 2025 as it implements its “OneGS 3.0” artificial intelligence initiative, which covers everything from client engagement 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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