European Banks Anticipate Job Cuts of 200000 as AI Becomes More Important
European banks may cut over 200,000 jobs by 2030 as they adopt AI and close branches, impacting the workforce significantly.
London: Europe’s banking sector is facing big changes. A new Morgan Stanley report says that over 200,000 banking jobs could disappear by 2030. This is because banks want to use AI more and shut down physical branches. This change could affect about 10% of the workers at 35 major banks.
The job cuts will mostly hit back-office roles, risk management, and compliance jobs. These are the parts of banking that deal with rules and finances. Algorithms are much faster and more efficient than people with these tasks. Banks are excited to see efficiency gains of about 30%, according to the Morgan Stanley report.
It’s not just happening in Europe. Goldman Sachs also told U.S. workers that there will be job cuts and a hiring freeze until the end of 2025. This effort is called “OneGS 3.0” and will change many parts of the bank, like helping new clients and following rules.
Some banks have already started letting people go. For instance, Dutch bank ABN Amro plans to cut 20% of its workers by 2028. Société Générale’s CEO has said that nothing is safe. However, some banking leaders in Europe are being careful. A JPMorgan Chase executive mentioned that if new bankers don’t learn the basics, it could hurt the industry later on.