European Banks Plan to Cut One in Ten Jobs by 2030 as AI Takes Over
Amsterdam, Wednesday, 31 December 2025.
Morgan Stanley research reveals European banks will eliminate over 200,000 positions by 2030, representing more than 10% of the sector’s 2.1 million workforce. AI automation will replace human roles in customer service, risk analysis, and compliance functions while branch closures accelerate due to online banking trends. German and French banks face the highest impact due to elevated operational costs, with ABN Amro’s recent mass layoffs exemplifying this transformation.
The Scale of AI-Driven Transformation
The research conducted by Morgan Stanley, an American investment bank, indicates that European banks will eliminate more than 200,000 jobs by 2030, representing over 9.524 percent of the sector’s current workforce [1][2][3]. The Financial Times reported these findings, which highlight the banking industry’s accelerated digital transformation [1][2][3]. Currently, approximately 2.1 million people work in the European banking sector, making this projected reduction one of the most significant workforce restructurings in the region’s financial services history [1][2][3]. The timeline extends through 2030, giving banks roughly five years to implement these changes systematically [1][2][3].
How AI Technology Works in Banking Operations
Banks are deploying artificial intelligence systems to automate specific functions that traditionally required human oversight and decision-making [1][2][3]. The technology targets customer service operations, where AI chatbots and automated response systems can handle routine inquiries and transactions without human intervention [1][2][3]. Risk analysis represents another critical area where AI algorithms can process vast amounts of financial data to assess creditworthiness and market risks more efficiently than human analysts [1][2][3]. Additionally, anti-money laundering controls and regulatory compliance monitoring are being automated through AI systems that can detect suspicious patterns and ensure adherence to financial regulations [1][2][3]. These technological implementations allow banks to reduce operational costs while maintaining service quality [1][2][3].
Geographic Impact and Efficiency Gains
The efficiency benefits of AI adoption will be particularly pronounced for banks serving consumers in Germany and France, where operational costs remain relatively high compared to other European markets [1][2][3]. Morgan Stanley’s analysis suggests that banks in these countries have greater potential for cost reduction through digital transformation and AI implementation [1][2][3]. The research indicates that AI and increasing digitalization enable banks to operate much more efficiently, particularly in high-cost markets [1][2][3]. Simultaneously, banks continue closing physical branches as online banking becomes increasingly prevalent, further reducing operational expenses and staffing requirements [1][2][3].
Real-World Examples and Industry Precedent
ABN Amro’s announcement in November 2025 exemplifies this transformation, with the Dutch bank revealing plans to eliminate thousands of jobs primarily because AI technology can assume much of the work previously performed by human employees [1][2][3]. This case demonstrates how European banks are already implementing AI-driven workforce reductions rather than merely planning for future changes [1][2][3]. Other European banks are similarly reducing their personnel through increased use of AI technology in business processes [1][2][3]. The American bank Citigroup stated in 2024 that AI would likely displace more jobs in the banking sector than in any other industry, indicating this trend extends beyond European markets [1][2][3]. However, recent data from Fortune suggests that overall headcount across banking and finance has remained relatively stable despite some Wall Street layoffs in 2025, with major banks like JPMorgan actually increasing their workforce by 2,000 employees and Goldman Sachs employing 1,800 more workers in September 2025 compared to the previous year [4].