Morgan Stanley warns of major workforce cuts driven by automation
More than 200,000 jobs in the European banking sector could disappear within the next five years as banks accelerate the adoption of artificial intelligence and shift operations online, according to an analysis cited by the Financial Times.
Analysts at Morgan Stanley estimate that European banks may cut around 10% of their workforce by 2030. The study covers 35 lenders employing about 2.12 million people, implying roughly 212,000 potential job losses.
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Roles in back-office, middle-office, risk management and compliance are seen as the most vulnerable, as AI can increasingly automate routine tasks. Morgan Stanley notes that several banks already report efficiency gains of up to 30% from AI and further digitalisation.
Investor pressure to improve profitability is intensifying, with European banks lagging behind US peers. Recent announcements, including major workforce reductions at ABN Amro and cost-cutting warnings from Société Générale, underline the scale of the shift. While UBS experiments with AI-powered banker avatars, some executives, including leaders at JPMorgan Chase, caution against moving too fast and neglecting core banking skills.
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