European banks plan to cut 200,000 jobs as they adopt AI
According to the Financial Times, European financial institutions are planning to cut 200,000 jobs due to the adoption of AI.
AI forecast to put 200,000 European banking jobs at risk by 2030
European banks plan to cut 200,000 jobs as AI takes hold | TechCrunch
https://techcrunch.com/2026/01/01/european-banks-plan-to-cut-200000-jobs-as-ai-takes-hold/
According to a new analysis by Morgan Stanley, the European banking industry could lose more than 200,000 jobs by 2030 as financial institutions adopt AI and close brick-and-mortar branches, equivalent to around 10% of the workforce at Europe's 35 largest banks.
TechCrunch points out that the adoption of AI in financial institutions will have the greatest impact on the less glamorous core functions of banking, such as back office, risk management, and compliance. A Morgan Stanley report says that financial institutions can expect to see a 30% efficiency improvement as a result of AI adoption.
Job cuts at financial institutions are not limited to Europe. Goldman Sachs has reportedly warned its US employees that it will implement job cuts and a hiring freeze by the end of 2025 as part of its planned AI initiative, dubbed 'OneGS 3.0,' which will launch in October 2025 and
Some financial institutions have already begun reducing their workforce, with ABN Amro, a major Dutch bank , announcing plans to cut one-fifth of its workforce by 2028. Frédéric Oudea, CEO of French megabank Société Générale , also hinted at the introduction of AI, saying, 'Nothing is sacred.'
But some European banking executives are urging caution, with a senior executive at JPMorgan Chase telling the Financial Times that if junior bankers don't learn the basics, it could have a negative impact on the industry as a whole.
Related Posts:
in AI, Posted by logu_ii