A new Morgan Stanley analysis, reported by Financial Times, stated that more than 200,000 European banking jobs could vanish by 2030 as lenders lean into AI and shutter physical branches. These job cuts would likely affect back-office operations, risk management, and compliance the most.
Morgan Stanley based its analysis on a study of 35 banks employing approximately 2.1 million staffers.
“Many banks have quoted efficiency gains coming from AI and further digitalization to the tune of 30 per cent,” Morgan Stanley said.
The report mentions that banks have already begun to point to AI as a factor in restructuring their staffing levels. For example, Dutch lender ABN Amro said in November 2025 it would cut about 20% of its full-time staff by 2028, while Société Générale CEO Slawomir Krupa warned in March that “nothing is sacred” in his campaign to reduce the French banks costs.
“We can already see industry changes in audit, law and consulting, but banks aren’t delivering improved efficiency yet,” said Jason Napier, head of European banks research at UBS. “Cost bases are large … and these new powerful tools are yet to be fully implemented.”
“Those who still need convincing that AI will significantly change financial services should spend more time exploring the tools which are already available,” he added.
A recent report also mentioned that HSBC plans to cut 10% of its total workforce in the coming years. The global banking giant employed 208,720 full-time employees, as reported in its year-end report of December 2025.