Dive Brief:
- Deutsche Bank's CEO, John Cryan, says the company plans to make massive job cuts, reports Fortune. He warned about automation taking over jobs in the banking industry and the cost savings it would create as a result.
- According to Fortune, Cryan is under pressure from stockholders to cut costs. Cryan said automation will not only help the bank save money, but also make it operate more efficiently.
- Cryan noted that most banks employ about half the number of his 97,000 workers, according to the report.
Dive Insight:
Automation is expected to replace many retail jobs, and is expected to take hold of the banking industry, as well. Automation has been used in manufacturing for decades and could claim even more jobs. Finance was one of the first targets of automation due to a computer's ability to more accurately and more quickly calculate numbers.
Jobs with repetitive tasks, such as cashier and other clerical positions, are prime targets for computerization. The challenge for employers and workers is to ready their workers through training and upskilling, which employers can jumpstart by being transparent about which tasks may soon be automated.
