Europe’s largest banks are accelerating cost-cutting restructurings, driven by investor pressure to improve profitability and close the gap with US rivals. Digitalization, artificial intelligence, and branch closures are central to these strategies. According to a Morgan Stanley forecast cited by the Financial Times, more than 200,000 banking jobs in Europe could disappear over the next five years.
Most banks cite digital transformation as the main driver, often relying on voluntary departures and retirements rather than direct layoffs.
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Banks leading the cuts
UBS and Deutsche Bank are at the forefront. UBS faces major overlaps after acquiring Credit Suisse, with up to 10,000 jobs potentially cut by 2027 as part of post-merger integration, according to Swiss media. The bank said it aims to keep layoffs minimal.
Deutsche Bank plans to cut nearly 2,000 retail jobs and close more branches. CEO Christian Sewing said branch reductions were already factored into cost plans.
Elsewhere, Société Générale will remove 1,800 roles in France through natural attrition, while ING announced 230 job cuts, mainly targeting management positions. BNP Paribas plans to eliminate 1,200 jobs in asset management by 2027 following the AXA IM integration.
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