AI Triggers Banking Layoffs: 200,000 Jobs at Risk in Europe by 2030

• Morgan Stanley report predicts over 200,000 banking jobs could be lost in the next five years due to AI adoption, primarily in European banks.
• The study focused on 35 major European banks, estimating nearly 10% of their 2.12 million roles could be cut by 2030.
• Jobs in 'Central Services' like back-office, middle-office, risk management, compliance, and transaction monitoring are at high risk due to repetitive tasks being automated by AI.
• Banks are turning to AI to increase profitability and reduce high cost-to-income ratios, especially in countries like France and Germany, after exhausting traditional cost-cutting methods.
• Employees are advised to acquire new skills in technology, data analytics, and AI oversight to secure their positions amidst this restructuring.

Why It Matters: AI is set to eliminate 200,000 banking jobs in Europe, pushing employees to upskill.