European banks plan to cut 200,000 jobs as AI takes hold

A Morgan Stanley analysis, reported by the Financial Times, suggests that Europe's banking sector could eliminate more than 200,000 jobs, representing about 10% of the workforce across 35 major banks, by 2030 as they integrate Artificial Intelligence and close physical branches. The job reductions are expected to heavily impact back-office operations, risk management, and compliance, areas where algorithms promise efficiency gains of up to 30%. This trend is not exclusive to Europe, as Goldman Sachs has already announced job cuts and a hiring freeze in the U.S. related to its AI initiative. While some European banks like ABN Amro and Société Générale are moving forward with significant staff reductions, some industry executives caution that eliminating too many junior roles could hinder the development of fundamental banking skills.

(Source：TechCrunch)