Europe’s banking industry faces a massive workforce reduction driven by artificial intelligence and digital transformation. Morgan Stanley research cited by the Financial Times projects that approximately 200,000 jobs at 35 major European banks could disappear by 2030, representing roughly 10% of their total workforce.

Back-office functions, risk management, and compliance departments face the greatest threat, as banks bet on AI systems to handle data-intensive tasks more efficiently than human workers. The Morgan Stanley analysis suggests banks anticipate efficiency improvements of around 30% from these technological shifts.

This trend extends beyond Europe. Goldman Sachs announced in October that U.S. employees would face job reductions and a hiring freeze lasting through 2025, part of an AI initiative called “OneGS 3.0” designed to automate processes from client onboarding to regulatory compliance.

Several institutions have already begun substantial cuts. ABN Amro in the Netherlands plans to eliminate 20% of its workforce by 2028, while Société Générale’s CEO has indicated all positions are subject to review. However, some banking executives are expressing concerns about the long-term consequences, with a JPMorgan Chase representative warning the Financial Times that if entry-level bankers no longer gain foundational experience, the industry could face serious problems down the line.