Bank CEOs Says Robots Can Replace Half of Citigroup and Deutsche Bank Employees

Investment bank CEOs believe machines will take over ‘lower-value tasks’. 50% of employees are at risk.

Citigroup has 20,000 technology and operations staff. That about 40% of the banks total number of employees. Those jobs are at risk.

In an FT interview, Jamie Forese, Citi president, commented “We’ve got 20,000 operational roles. Over the next five years could you make it 10,000?”

Deutsche Bank Wants to Chop Half of Its 97,000 Headcount

In a separate FT interview last year, Deutsche Bank CEO commented on the need to Cut Tens of Thousands of Jobs.

“We employ 97,000 people,” John Cryan told the Financial Times. “Most big peers have more like half that number.”

“We’re too manual, which can make you error-prone and it makes you inefficient. There’s a lot of machine learning and mechanisation that we can do.”

Cuts Coming

Cuts are coming and those are not all low-paying jobs.

Mike "Mish" Shedlock

Comments
No. 1-12
MissionAccomplished
MissionAccomplished

Why? Well if we are so freaking global let them reap all these benefits back home in their own countries instead of plugging up mine. My Silicon Valley iCrap will cost even less if Mandeep only pays Dharavi rent.

What is the benefit to me?

MissionAccomplished
MissionAccomplished

I just see artificially low interest rates enabling an artificial future and can't help but think there is a discontinuity lurking out there somewhere.

KidHorn
KidHorn

My local Capital One has eliminated tellers all together. All transactions must be done via ATM. They have a couple of desks for people opening accounts and handling loans.

Realist
Realist

Tony CA “if any of these predictions are remotely correct, why in the world is our political class continually pushing for open - less restrictive immigration? It as if our leaders have become oblivious to the current situation.” Not all politicians want immigration. Those that want to see more immigration probably have the following reasons: First: economic growth is a combination of productivity growth x population growth. Since population growth is slowing dramatically in the US, this leads to less economic growth. By bringing in more immigrants, you can boost your economic growth. Second: demographically, the US is becoming a nation with more and more retirees. As a result, the participation rate of workers in the economy has fallen from 68% to 62%. If you bring in a lot of immigrants in their 20s and 30s, you can boost the number of workers supporting the elderly. As Mish pointed out recently, there is a pension and health care crisis coming as the elderly become a larger share of the population. Third: There is a shortage of skilled workers in the US. There are more jobs sitting empty, than there are unemployed people. If you bring in a lot of highly skilled immigrants, you can help solve this problem. Fourth: The US was built by immigrants. It is a country of immigrants. Why on earth would you stop now?

Greggg
Greggg

Here's the prototype for Wells Fargo: