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Europe’s banking sector is facing a major structural shake-up as artificial intelligence (AI) promises unprecedented efficiency gains. According to a Morgan Stanley analysis reported by the Financial Times, more than 200,000 jobs across 35 major European banks—roughly 10% of the workforce—could be eliminated by 2030 as lenders increasingly rely on AI and reduce physical branch networks.
The impact will be felt most acutely in back-office operations, risk management, and compliance—areas often characterized by labor-intensive spreadsheet work and repetitive processes. Banks are projecting efficiency improvements of up to 30%, making AI adoption a powerful cost-saving tool.
“This is about reengineering the way banks operate, not just cutting costs,” said one banking analyst. “AI allows institutions to streamline operations while reallocating human capital toward strategic and client-facing roles, but the short-term workforce disruption will be significant.”
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The trend is not confined to Europe. Goldman Sachs had previously warned U.S. employees of job cuts and a hiring freeze through the end of 2025 under its “OneGS 3.0” initiative, which leverages AI across client onboarding, regulatory reporting, and operational workflows. This illustrates a global shift toward algorithm-driven banking.
Some European banks have already begun implementing large-scale layoffs. Dutch lender ABN Amro plans to cut a fifth of its staff by 2028, while Société Générale’s CEO warned that “nothing is sacred,” signaling that no department is immune from automation. These announcements have sparked market scrutiny as investors weigh potential cost savings against reputational and operational risks.
However, some industry leaders are urging caution. A JPMorgan Chase executive told the Financial Times that if junior bankers do not learn core fundamentals, “it could come back to haunt the industry,” highlighting concerns about skill erosion and long-term operational resilience.
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