Technical

Srinivasa Reddy Kandi: AI Set to Eliminate 200,000 Banking Jobs Across Europe by 2030

January, 02, 2026-04:49

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AI Set to Eliminate 200,000 Banking Jobs Across Europe by 2030:

Europe’s banking industry is bracing for a major workforce shake-up as artificial intelligence accelerates cost-cutting and automation efforts. A recent Morgan Stanley analysis, cited by the Financial Times, estimates that over 200,000 banking roles in Europe could be eliminated by 2030. That represents nearly 10% of the workforce across 35 of the region’s largest banks, driven largely by increased reliance on AI and the continued closure of physical branches.

The biggest impact is expected in back-office functions, including risk management and compliance — areas where AI systems can process data, analyze patterns, and manage reporting far faster and more efficiently than human teams. According to the report, banks are targeting productivity improvements of up to 30%, making automation an increasingly attractive option.

This trend isn’t limited to Europe. In the United States, Goldman Sachs informed employees in October about impending job reductions and a hiring freeze extending through 2025. These moves are part of its AI-driven transformation initiative, “OneGS 3.0,” which aims to automate processes ranging from client onboarding to regulatory documentation.

Some banks have already begun implementing deep cuts. ABN Amro plans to reduce its workforce by 20% by 2028, while Société Générale’s CEO has openly stated that “nothing is sacred” when it comes to restructuring. However, not all industry leaders are fully convinced this path is risk-free. A senior executive at JPMorgan Chase cautioned in the Financial Times that excessive reliance on AI could undermine the development of junior bankers, potentially weakening the industry’s long-term expertise.

Author: Kandi Srinivasa Reddy, Srinivasa Reddy Kandi, #KandiSrinivasaReddy, #SrinivasaReddyKandi