European Banks to Cut 200,000 Jobs by 2030 on AI

European banks are projected to eliminate more than 200,000 jobs by 2030 as they accelerate adoption of artificial intelligence and reduce reliance on physical branches, according to a Morgan Stanley analysis. The cuts, representing about 10 percent of the workforce at 35 major institutions across the region, will primarily target back-office operations, risk management, and compliance roles where AI can automate routine tasks.

The analysis, which forecasts efficiency improvements of up to 30 percent from AI integration, highlights how algorithms can process data such as spreadsheets and reports far faster than human employees. Banks anticipate these technologies will streamline processes like loan approvals, fraud detection, and anti-money laundering monitoring, allowing for round-the-clock operations without the limitations of human schedules. Officials at several institutions have already signaled similar shifts. In October, Goldman Sachs notified U.S. employees of impending job reductions and a hiring freeze extending through the end of 2025, tied to its OneGS 3.0 AI initiative that covers areas from client onboarding to regulatory reporting.