Artificial intelligence (AI) has emerged as a disruptive force across various industries worldwide, and banking could be among the next ones to feel its effects. According to new analysis, widespread AI adoption may lead to significant job cuts among major European banks over the next five years.
According to a Morgan Stanley report quoted by the Financial Times, European lenders could lose nearly 10 per cent of their workforce by 2030 due to automation-induced layoffs, leading to over 200,000 jobs at risk. Should this scenario play out as predicted, banking may join tech industries in experiencing long-term layoffs caused by automation.
Why Banks Are Cutting Jobs
According to a report released by the EBA Research Institute, AI-driven efficiency gains and physical bank branch closures are two main contributors to anticipated workforce cuts in Europe. Banks have increasingly implemented machine learning and automation tools as a way of streamlining operations, cutting costs, and improving productivity.
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About 2,112,000 roles across 35 large European banks could be eliminated. These could primarily impact:
- Back-office operations
- Risk management
- Compliance and regulatory reporting
These tasks often involve repetitive and data-heavy activities like transaction monitoring, report generation and large-scale data processing, all of which AI systems can manage more efficiently than humans could ever hope.
Banks Already Signalling Workforce Reductions
Industry analysts view these changes as indicators of an impending structural shift rather than isolated cost-cutting initiatives.
- ABN Amro has reportedly announced plans to cut around 20 per cent of its workforce by 2028, citing digitisation and internal restructuring.
- Société Générale has indicated that no part of its business is exempt from review as it looks to remain competitive and control costs.
Jason Napier, Head of European Bank Research at UBS, noted in the Financial Times that this transformation can already be seen across various industries.
Experts Say AI’s Impact Is Inevitable
Jason Napier, Head of European Banks Research at UBS, told the Financial Times that the transformation is already visible in related industries.
“We can already see industry changes in audit, law and consulting, but banks aren't delivering improved efficiency yet. Those who still need convincing that AI will significantly change financial services should spend more time exploring the tools which are already available,” he said.
A Global Trend, Not Just Europe
Goldman Sachs recently informed its employees in October 2025 of job cuts and a hiring freeze as part of OneGS 3.0, an AI-led strategy covering multiple operational areas from client onboarding to regulatory compliance.
What This Means Going Forward
AI adoption at banks worldwide could become more widespread, leading to banks depending on automation to perform routine and analytical tasks that could improve efficiency and profitability; yet this also raises concerns of job displacement and requires large-scale reskilling within the financial industry.
At present, this report serves as an alarm bell: AI is no longer just an emerging threat to banking jobs; rather, it has become part of daily reality.