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

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

Morgan Stanley reports that as many as 2,00,000 European banking jobs could disappear in the next five years.

Written by Akash Dutta, Edited by Rohan Pal | Updated: 2 January 2026 16:40 IST

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

Photo Credit: Pixabay/Mohamed Hassan

European banks reportedly plan major job cuts as AI and automation reshape operations

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Highlights

Back-office, risk and compliance roles expected to be most affected
Many banks have reportedly cited efficiency gains from AI integration
Dutch bank ABN Amro plans to let go of a fifth of its total staff by 2028

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.

These Companies Fired Over 10K Employees Between July and September 2025

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.

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Further reading: AI, Artificial Intelligence, Layoffs, Banking

Akash Dutta Email Akash Dutta

Akash Dutta is a Chief Sub Editor at Gadgets 360. He is particularly interested in the social impact of technological developments and loves reading about emerging fields such as AI, metaverse, and fediverse. In his free time, he can be seen supporting his favourite football club - Chelsea, watching movies and anime, and sharing passionate opinions on food. More