How AI Revolution Is Driving 200,000 Layoffs On Wall Street

Advancements in artificial intelligence (AI) and automation are projected to lead to substantial layoffs and job eliminations on Wall Street. Based on a survey conducted by Bloomberg Intelligence, featuring input from Wall Street giants like Citigroup, JP Morgan Chase and Goldman Sachs, middle office and operations are most at risk – any job that involves routine or repetitive tasks is in the crosshairs. Industry analysts forecast that global banks may eliminate up to 200,000 positions over the next three to five years. In June, Citi reported that AI is likely to displace more jobs across the banking industry than in any other sector. About 54% of jobs across banking have a high potential to be automated, Citi said at the time. On Wall Street, chief information and technology officers anticipate an average net workforce reduction of 3% within their organizations. Notably, nearly 25% of the 93 respondents predict a more pronounced decline, estimating workforce reductions between 5% and 10%. Is your career ready for the shift? Read on to find out how to prepare.

The Real Reason Behind the Layoffs: Going Beyond AI

AI is simply the enabler, a tool that allows companies to capture what banks are built on: profit. The Economic Times of India explains it like this, referencing the BI (Bloomberg Intelligence) survey: In 2027, banks could see pretax profits 12% to 17% higher than they would otherwise have been — adding as much as $180 billion to their combined bottom line — as AI powers an increase in productivity. Eight in ten respondents expect generative AI to increase productivity and revenue generation by at least 5% in the next three to five years.

Despite the anticipated job reductions, some industry leaders emphasize that AI will augment rather than replace human roles. Teresa Heitsenrether, overseeing JPMorgan’s AI initiatives, stated that the bank’s adoption of generative AI has so far enhanced existing jobs. Similarly, JPMorgan CEO Jamie Dimon has highlighted the potential of AI to improve quality of life, suggesting that while some positions may be eliminated, technology will lead to a transformation in work patterns and job functions. But probably not for the people who are out of work.

Moving Like Meta, with AI on Wall Street

In the technology sector, Meta CEO Mark Zuckerberg has indicated that AI could soon replace mid-level software engineers. In a recent interview, Zuckerberg stated that by 2025, AI could function as a mid-level engineer capable of writing code, potentially automating roles that currently command mid-six-figure salaries. In a wide-ranging interview on the Joe Rogan Experience, Zuckerberg says that the AI replacement strategy might be an expensive endeavor (at the outset) but the long-term potential (read: profit) of replacing these mid-level engineers is too big to pass up.

How to Prepare for the Impact of AI in Your Career

While Jamie Dimon offers a potential upside to the implementation of AI, the challenge becomes personal if your job is affected. And, in the coming years, every industry will be affected by the impact of AI. How can you prepare, and make sure your career is aligned with what companies really want?

1. Know thy Enemy: Is AI the enabler, or the enemy, of your career? Probably a little bit of both. The exact answer depends on your perspective, so try this one: To prepare for the future of your career, learn to know your enemy so you can make it your friend. This strategy comes from the Chinese philsopher, Lao Tzu (author of Dao Te Ching and The Art of War), who says: “Know thy enemy and know yourself; in a hundred battles, you will never be defeated”. If you know yourself (your skills, your experience, your connetions and network) but not the enemy, your chances of winning and losing are equal. And if you know the enemy, but not yourself, you will overestimate your capabilities, misread the room, and make mistakes that could jeopardize your career. While your career is not necessarily a battleground, or a war zone, you may feel like you have to fight for your future in a world with AI. How do you do that?
2. Upskilling Can Help: how familiar are you with AI and what it can do? Adding AI familiarity to your résumé is easy, with free courses being offered by Nvidia, Coursera and others. Plus, the number one question in job interviews, in 2025, is: How familiar are you with AI? Get familiar with the ways that AI can help – so that you see it as a friend, not a foe, in your career.
3. Two Words that Change Everything: do you find yourself feeling anxious over what AI might mean to your career and your future? You are not alone. Remember these two words, if you want to show up differently inside difficult circumstances, anxiety and worry: slow down. As a coach to thousands of entrepreneurs, executives, media personalities and aspiring leaders, I’ve seen the power of those two words. Two words that can open up new possibilities, and new options – which might be exactly what your career needs. In this go-go-go world, can you find time to put down the square flashlight (the one that brings the bad news and unrealistic expectations)? When I slow down, I see possibilities that were missing before.

Expanding on AI in Your Career

Ultimately, AI opens up new possibilities. For Wall Street firms, those possibilities might include layoffs and increased profitability. On a personal level, that may look like a door closing. That means it’s time to look for a window, and a new opening. For every employee, in every business sector, the advancements in AI require a similar advancement in human ingenuity. Innovation is a renewable resource that never runs out – and creative solutions are what your career my require. Self-leadership, and exploration of new possibilities, have never been more important in your career. Inside any situation, no matter how difficult, new possibilities always exist – starting with how you choose to react and respond. AI is a tool: how will you use it? Just like fire can burn you, or cook your meal, the answer depends on knowing what you’re doing – and paying attention.

Predictions about the future can cause anxiety, but returning to the present reminds us of the YAHOO strategy. That’s not a search engine – it’s an acronym I use with my coaching clients, to remind them: you always have other options. Inside the brave new world of AI, career possibilities always exist – – job #1 is to find them.