AI Can Reportedly Take Away More Than 2 Lakh Banking Jobs by 2030

Artificial intelligence (AI) was reportedly cited as the primary reason behind European banks eliminating more than 2,00,000 jobs by 2030. As per the report, a Morgan Stanley analysis claims that European lenders, which includes region's 35 large banks, could eliminate 10 percent of total roles in the next five years, bringing a massive wave of layoffs. After the COVID-10 pandemic, layoffs have plagued the tech industry, but if the predictions are true, the next industry to see job cuts could be banking.

European Banking Sector Could See Massive Layoffs

According to a Financial Times report, analysts from Morgan Stanley have predicted that widespread AI adoption and reductions in physical branch could lead to reduced staffing needs in Europe over the next five years. Banks are said to be exploring the gains in operational efficiency that AI systems can deliver.

With 10 percent of the total 2.1 million jobs, or nearly 2,12,000 roles at risk, the publication claims that the biggest layoffs will be seen in back-office operations, risk management, and compliance. These roles are reportedly seen as repetitive or data-intensive, and are said to be the prime candidates for automation using machine learning and AI tools. Some of these tasks include monitoring transactions, preparing reports and processing large datasets. Algorithms can execute these functions faster than traditional manual processes, a factor driving banks' interest in technology-led restructuring.

Several European banks have reportedly already outlined their plans for staff reduction. Dutch bank ABN Amro has reportedly announced plans to eliminate around 20 percent, or one-fifth, of its total workforce by 2028, citing ongoing digitisation and organisational stratification as reasons. French lender Société Générale has reportedly also indicated that no segment of its operations is exempt from scrutiny as the institution seeks to align its cost base with competitive pressures.

Jason Napier, Head of European banks research at UBS, told FT, “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.”

The trend is not confined to Europe. In the US, Goldman Sachs reportedly told employees in October 2025 that it would undertake job cuts and implement a hiring freeze through the end of the year as part of an AI-driven strategy known as OneGS 3.0. That initiative covers operational areas from client onboarding to regulatory reporting, signalling that financial institutions globally are exploring similar efficiency strategies.