European banks plan to cut 200,000 jobs as AI takes hold

Europe’s banking industry is facing a major reckoning on efficiency. A recent Morgan Stanley analysis, cited by the Financial Times, suggests that more than 200,000 jobs across European banks could be eliminated by 2030 as lenders accelerate the adoption of artificial intelligence and continue to close physical branches. The figure represents approximately 10% of the total workforce across 35 leading banks in the region.

The deepest cuts are expected in back-office functions, risk management, and compliance — the less visible but essential parts of banking where automated systems are seen as capable of processing data and regulatory tasks faster and more accurately than human staff. According to Morgan Stanley's assessment, banks are targeting efficiency gains of up to 30% from these changes.

This wave of restructuring is not limited to Europe. In the United States, Goldman Sachs warned employees last October about impending job reductions and announced a hiring freeze lasting through the end of 2025. The moves are tied to its AI-driven transformation program, “OneGS 3.0,” which targets areas ranging from client onboarding to regulatory reporting.

Several European lenders have already begun implementing cuts. Dutch bank ABN Amro has announced plans to reduce its workforce by around 20% by 2028, while Société Générale's chief executive has stated that “nothing is sacred” in restructuring efforts.

Despite the push toward automation, some banking leaders are urging restraint. An executive at JPMorgan Chase told the Financial Times that if junior bankers no longer gain hands-on experience in the fundamentals of the business, the long-term consequences could ultimately hurt the industry.