Machines replace labor, leaving global banks with the biggest job cuts in four years

Banks around the world are announcing the biggest round of job cuts in four years, cutting costs in response to a slowing economy and adapting to digital technology. More than 50 banks have announced plans to cut 77,780 jobs this year, according to documents filed by companies and unions. That was the most since the 91,448 job cuts were made in 2015.

The total number of job cuts at banks between 2014 and 2019 has exceeded 425,000, according to the data. But the actual number is likely to be even higher, as many banks cut jobs without disclosing plans. Eighty-two percent of European banks will face the burden of negative interest rates in the coming years.

Morgan Stanley will cut about 1,500 jobs by the end of the year to boost efficiency, according to people familiar with the matter. Mr Gorman, the bank’s chief executive, said job cuts accounted for about 2 per cent of the bank’s workforce.

Machines replace labor, leaving global banks with the biggest job cuts in four years

This year’s data also highlighted weakness in European banking, with international trade disputes affecting the European economy and negative interest rates further eroding European bank lending revenues.

Deutsche Bank, Germany’s biggest bank, is understood to be at the top of the job cuts, is using robots instead of labor and plans to lay off 18,000 workers by 2022. The robot has saved 680,000 hours of manual work, processed 5 million transactions with the robot and executed 3.4 million checks in its investment bank.

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