European banks are poised to eliminate over 200,000 jobs by 2030 as they increasingly adopt AI technologies and close physical branches, according to a Morgan Stanley analysis. This reduction, affecting roughly 10% of the workforce across 35 major banks, will primarily impact back-office operations, risk management, and compliance roles, where AI is expected to enhance efficiency by 30%. The trend is not limited to Europe, as U.S. banks like Goldman Sachs are also implementing job cuts and hiring freezes in their AI-driven strategies. Despite the push for automation, some banking leaders caution against rapid downsizing, warning that a lack of foundational knowledge among junior bankers could negatively affect the industry in the long run. This matters because the shift towards AI in banking could significantly alter the job landscape and operational dynamics within the financial sector.
