Artificial Intelligence (AI) could lead to the loss of more than 200,000 jobs in European banks by 2030, according to a new report. A recent analysis by Morgan Stanley suggests that major European lenders, including 35 large banks, may cut nearly 10 percent of their total workforce over the next five years due to increased automation and digital transformation.
The banking sector is now facing a potential employment crisis, similar to what the tech industry experienced after the COVID-19 pandemic. If these projections hold true, large-scale layoffs could soon become a reality across Europe’s financial institutions.
Large-Scale Job Cuts Likely in European Banking Industry
According to a report published by the Financial Times, Morgan Stanley analysts predict that widespread adoption of AI technologies, combined with a reduction in physical bank branches, will significantly lower staffing requirements across Europe. Banks are increasingly turning to AI-driven systems to improve operational efficiency and reduce costs.
Out of an estimated 2.1 million banking jobs, nearly 10 percent—approximately 212,000 roles—are considered at risk. The report highlights that the biggest job losses are expected in back-office operations, risk management, and compliance departments.
These roles are often repetitive and data-intensive, making them ideal candidates for automation through machine learning and AI tools. Tasks such as transaction monitoring, report generation, and large-scale data processing can now be handled more quickly and accurately by algorithms compared to traditional manual methods. This technological advantage is driving banks to restructure their operations around digital solutions.
Banks Already Planning Workforce Reductions
Several European banks have already outlined plans to reduce their workforce. Dutch banking giant ABN Amro has reportedly announced plans to cut nearly 20 percent of its total workforce by 2028, citing ongoing digitalisation and organisational restructuring as key reasons.
Similarly, French lender Société Générale has indicated that no department will be exempt from scrutiny as it seeks to align its cost structure with increasing competitive pressures in the global banking market.
Global Trend Extends Beyond Europe
This trend is not limited to Europe alone. Reports suggest that in the United States, Goldman Sachs informed employees in October 2025 that it plans to implement job cuts and freeze new hiring under its AI-driven strategy called OneGS 3.0.
The initiative focuses on automating several operational areas, including client onboarding and regulatory reporting, highlighting that financial institutions worldwide are moving in the same direction—leveraging AI to enhance efficiency while reducing reliance on human labour.
A Defining Shift for the Future of Banking Jobs
As AI continues to evolve, the banking sector is undergoing a fundamental transformation. While technology promises faster processes and reduced costs, it also raises serious concerns about job security and workforce displacement. Experts believe reskilling and upskilling employees will be critical to navigating this transition and ensuring long-term sustainability for both banks and their workers.
