AI advances could lead to 200,000 banking jobs being cut this year

🎯 Impact Sentiment: Concerning

📋 Summary

• Morgan Stanley analysts predict up to 200,000 European banking jobs—about 10% of the sector—could disappear by 2030 due to AI.
• Most cuts are expected in back- and middle-office roles, like risk management and compliance, where AI is boosting efficiency by roughly 30%.
• Recent years have already seen major bank closures and job losses, and big names like ABN Amro, Société Générale, and Goldman Sachs have flagged potential layoffs or hiring freezes.
• JPMorgan Chase’s CEO argues removing entry-level jobs is risky for the industry’s future and could block new talent from starting careers, while also suggesting AI could free up time for better work-life balance.

💡 JR Insights

• 💼 Implication: Real people will feel these cuts, especially those in operational roles who might have once thought their jobs were insulated by industry complexity. Banking may start resembling tech in the way it treats “replaceable” roles.
• 🚨 Risk: Stripping away junior positions leaves the sector starving for future talent and skills—shutting out new entrants and eroding critical internal career ladders. Experienced staff won’t magically appear in five years if you don’t train anyone now.
• ✨ Takeaway: If you’re in banking and not actively learning about AI or tech-driven workflows, you’re putting yourself at risk. Staying still isn’t an option; upskilling is your only safety net in an industry willing to cut deep for efficiency.