Official announcements or press releases from major banks

Global Banks to Cut 200,000 Jobs Over Next 3-5 Years as AI Adoption Boosts Profits by $180 Billion

Jan 9, 2025, 02:48 PM

Global banks are poised to cut as many as 200,000 jobs over the next three to five years, driven by the increasing adoption of artificial intelligence (AI) in tasks traditionally performed by human workers, according to a Bloomberg Intelligence report. The anticipated job cuts, averaging a net reduction of 3% of the workforce, are expected to primarily affect back office, middle office, and operations roles. Customer service positions may also undergo changes as AI bots take on more client management functions, while know-your-customer duties are seen as vulnerable. The report, authored by Bloomberg Intelligence senior analyst Tomasz Noetzel, suggests that AI will not completely eliminate these jobs but will transform the workforce. Nearly a quarter of the 93 surveyed chief information and technology officers predict a steeper decline of between 5% and 10% in total headcount. The banks likely to be impacted include major players such as Citigroup Inc., JPMorgan Chase & Co., and Goldman Sachs Group Inc. The shift towards AI is expected to boost bank profits by as much as $180 billion by 2027, with 80% of respondents anticipating that generative AI will enhance productivity and revenue generation by at least 5% in the coming years. A Citi report also highlighted that 54% of banking jobs have a high potential for automation.