More than 200,000 European banking jobs could vanish by 2030 as lenders lean into AI and shutter physical branches, according to a Morgan Stanley analysis reported by the Financial Times. This represents approximately 10 per cent of the workforce across 35 major European banks. The banks in the analysis employ around 2.12 million staff, meaning that roughly 212,000 jobs could be lost.
The sector could axe 10 per cent of jobs over the next four years, with most of the cuts coming from central services divisions, including back and middle office roles, as well as risk management and compliance positions, where AI can deliver around 30 per cent efficiency gains. Dutch bank ABN Amro recently announced plans to cut 5,200 full-time roles by 2028, meaning that nearly a quarter of the Dutch lender's 22,000 staff will be axed over the next three years. Banks have already been criticised for closing physical locations in recent years to cut costs, with over 6,000 closures in the UK since 2015. Goldman Sachs warned U.S. employees in October about job cuts and a hiring freeze until the end of 2025 as part of an AI push dubbed OneGS 3.0 that focuses on automating processes such as client onboarding and regulatory reporting.
AI's effects have been largely delayed on the industry given its heavily regulated nature, but with a growing number of compliant AI tools hitting the shelves, the same effects seen on tech and retail workers could be mirrored in banking next. A senior JPMorgan Chase executive told the Financial Times that reducing junior roles too quickly could weaken the industry in the long term. The transformation reflects a fundamental shift in European banking, where AI-driven automation and digital banking adoption are reshaping workforce requirements across the continent's major financial institutions.
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Sources:
1. https://techcrunch.com/2026/01/01/european-banks-plan-to-cut-200000-jobs-as-ai-takes-hold/
2. https://www.techradar.com/pro/experts-warn-ai-advances-could-lead-to-200-000-banking-jobs-being-cut-this-year
3. https://www.wionews.com/technology/more-than-200-000-banking-jobs-could-go-as-ai-transforms-europe-s-finance-sector-1767344768587
4. https://www.fstech.co.uk/fst/Morgan_Stanley_Says_200000_European_Banking_Jobs_Under_Threat_From_AI_And_Branch_Closures.php
