TL;DR
A Morgan Stanley analysis, cited by the Financial Times, estimates that over 200,000 jobs at 35 major European banks could disappear by 2030 as institutions adopt AI and close branches. Back-office functions, risk management and compliance are expected to face the largest cuts, while some firms outside Europe have already signaled similar moves.
What happened
A recent Morgan Stanley study reported by the Financial Times projects that more than 200,000 positions across 35 major European banks — roughly 10% of their combined workforce — may be lost by 2030 as lenders embrace artificial intelligence and reduce physical branch networks. The analysis identifies back-office operations, risk management and compliance as the most exposed areas, where automation and algorithms can process data and reporting tasks more quickly than human staff. The report also points to potential efficiency improvements of about 30%. The trend is not limited to Europe: Goldman Sachs warned U.S. employees in October of planned job reductions and a hiring freeze into 2025 under an AI-led program. Some banks have already announced large cuts, with ABN Amro planning to reduce headcount by about a fifth by 2028 and executives at other lenders signaling broad restructuring intentions.
Why it matters
- Potential large-scale workforce displacement across major European banks could reshape employment in the sector.
- Automation risk is concentrated in operational, compliance and risk roles that handle high volumes of structured work.
- Projected efficiency gains of around 30% may accelerate cost-cutting and branch consolidation decisions.
- Similar AI-driven restructuring signals from U.S. and global firms suggest the trend could be industry-wide.
Key facts
- Morgan Stanley analysis, as reported by the Financial Times, estimates over 200,000 job losses by 2030.
- The figure represents roughly 10% of staff across 35 major European banks.
- Back-office operations, risk management and compliance were named as the hardest-hit areas.
- The report cites potential efficiency gains of approximately 30% from AI adoption.
- Goldman Sachs announced an AI initiative ('OneGS 3.0') and warned of cuts and a hiring freeze into 2025.
- ABN Amro has said it will cut about one-fifth of its workforce by 2028.
- Some bank leaders have indicated wide-ranging restructuring is possible; other executives urged caution about losing on-the-job training for junior staff.
What to watch next
- Regulatory responses to large-scale bank layoffs and AI deployment: not confirmed in the source.
- Whether projected 30% efficiency gains materialize and how quickly institutions implement them: not confirmed in the source.
- How banks will handle re-skilling, redeployment or severance for affected employees: not confirmed in the source.
Quick glossary
- Back-office operations: Internal processes that support a bank’s front-line activities, such as settlement, record keeping and transaction processing.
- Risk management: The set of practices and systems banks use to identify, measure and control financial and operational risks.
- Compliance: Activities required to ensure a bank follows laws, regulations and internal policies, including reporting and monitoring.
- Efficiency gains: Reductions in time, cost or resource use achieved by improving processes, often via technology or automation.
Reader FAQ
How many jobs are expected to be cut?
The Morgan Stanley analysis cited by the Financial Times estimates more than 200,000 roles could disappear by 2030.
Which banking roles will be most affected?
Back-office functions, risk management and compliance are reported as the most exposed areas.
Is this trend limited to Europe?
Not confined to Europe: the article notes Goldman Sachs warned of U.S. job cuts tied to its AI program.
Will banks immediately replace workers with AI?
not confirmed in the source
IN BRIEF Posted: 12:28 PM PST · January 1, 2026 IMAGE CREDITS: GETTY IMAGES Connie Loizos European banks plan to cut 200,000 jobs as AI takes hold Europe’s banking sector…
Sources
- European banks plan to cut 200,000 jobs as AI takes hold
- AI forecast to put 200000 European banking jobs at risk by …
- AI Could Help Eliminate 200K EU Banking Jobs By 2030
- AI Will Demolish 200000 Jobs According to Expert
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