European banks may lose 200,000 jobs by 2030 as AI reshapes operations and forces a major efficiency drive.

European banks headquarters as lenders adopt AI technologies that could lead to major job cuts across the sector by 2030.

AI Set to Reshape Europe’s Banking Workforce

European banks could shed more than 200,000 jobs by 2030 as lenders accelerate the adoption of AI and scale back physical branch networks, according to a new analysis by Morgan Stanley.

The report, cited by the Financial Times, estimates that the projected cuts would account for about 10 percent of the workforce across 35 of Europe’s largest banks, marking one of the most significant structural shifts the sector has seen in decades.

Back-Office Roles Most at Risk

The expected job losses are likely to fall heavily on back-office functions, including risk management and compliance. These areas, often described as the operational core of banking, are increasingly seen as suitable for automation, with AI tools capable of processing large volumes of data faster and with fewer errors.

Morgan Stanley estimates that banks could achieve efficiency gains of up to 30 percent by deploying AI-driven systems across these functions.

Global Trend Extends Beyond Europe

The move is not limited to Europe. In the United States, Goldman Sachs warned staff in October of planned job cuts and a hiring freeze lasting through the end of 2025. The measures are part of its AI-led strategy, known as “OneGS 3.0,” which targets processes ranging from client onboarding to regulatory reporting.

Some European lenders have already announced concrete plans. ABN Amro has said it intends to cut around 20 percent of its workforce by 2028, while Société Générale’s chief executive has signalled a sweeping approach to restructuring, saying that “nothing is sacred.”

Despite the push for automation, not all banking leaders are convinced that rapid workforce reductions are risk-free. A senior JPMorgan Chase executive told the Financial Times that over-reliance on AI could create long-term problems if junior bankers are denied the chance to learn core skills.

As European banks weigh cost savings against institutional knowledge, the coming years are expected to test how far AI can transform banking without weakening the foundations of the industry.