‘200,000 jobs at risk’: European banks may face massive cuts as AI reshapes banking by 2030

European banks are preparing for large-scale job cuts as artificial intelligence becomes a core part of their operations. According to a new analysis by Morgan Stanley, reported by the Financial Times, more than 200,000 banking jobs in Europe could be lost by 2030. This is around 10 per cent of the workforce across 35 major European banks.

The report says banks are using AI to improve efficiency and reduce costs, while also closing physical branches as more customers move to digital banking.

Which banking roles face the biggest impact

As per the Morgan Stanley analysis, job losses are likely to be highest in back-office functions, including risk management, compliance and internal operations. These areas rely heavily on data processing, document checks and reporting, tasks that AI systems can complete faster and at a lower cost. According to the report, banks expect efficiency gains of up to 30 per cent by using AI-driven tools for tasks such as reviewing spreadsheets, monitoring transactions and managing regulatory requirements.

Job cuts already underway across Europe

Some European banks have already announced workforce reductions. Dutch lender ABN Amro has said it plans to cut around 20 per cent of its staff by 2028 as part of its digital transformation strategy. In France, Société Générale’s chief executive has stated that no part of the business is exempt from change as technology reshapes banking operations.

The trend is not limited to Europe. In the United States, Goldman Sachs warned employees in October about job cuts and a hiring freeze until the end of 2025. The move is part of its AI-led restructuring plan known as “OneGS 3.0”, which focuses on automating processes such as client onboarding and regulatory reporting.

Concerns over skills and long-term risks

While banks are pushing ahead with automation, some industry leaders have urged caution. A senior JPMorgan Chase executive told the Financial Times that reducing junior roles too quickly could weaken the industry in the long term. The concern is that young bankers may miss out on learning core skills if AI takes over too many entry-level tasks.

Experts believe that banks will need to balance cost savings with proper training to ensure future employees understand the basics of banking, regulation and risk management.