Sberbank Cuts Staff by 20%! Replacing Them With AI

Russia’s largest lender Sberbank is making headlines after announcing plans to cut 20% of its workforce by the end of 2025.

The decision comes as the bank leans heavily on artificial intelligence to streamline operations and reduce costs.

According to CEO German Gref, AI systems are now capable of identifying inefficient roles and projects across the organization.

While the move reflects a growing global trend, it also raises questions about job security, corporate responsibility, and how far automation should go in the financial sector.

This shift shows how AI is no longer just a support tool but a decision maker.

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Key Takeaways

1. Sberbank plans to reduce its workforce by 20% by using AI driven efficiency analysis.

2. The bank spends around $1,000,000,000 annually on AI development and deployment.

3. The move highlights a growing tension between automation, management practices, and employment stability.

How Sberbank Is Using AI to Cut Staff

Sberbank’s approach to workforce reduction is rooted in data driven analysis. According to German Gref, the bank deployed a multi agent AI system to review employee performance, project efficiency, and operational value.

Based on this analysis, roles and projects deemed inefficient were marked for closure.

AI Based Performance Evaluation

The system reportedly focuses on measurable output rather than job titles. This includes:

• Project contribution and completion rates

• Cost efficiency of departments

• Overlapping responsibilities across teams

By relying on AI, Sberbank argues that decisions are more objective and less emotional. However, critics point out that algorithms still reflect the priorities set by management.

Scale of the Workforce Reduction

As of Sept. 30, Sberbank employed 294,578 full time staff, down from 308,092 at the end of 2024.

The planned cuts suggest tens of thousands more roles could be eliminated by Jan. 1, 2026. This makes it one of the largest AI driven staff reductions in the global banking sector.

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Political and Economic Context Behind the Decision

The announcement was made during an AI conference attended by Russian President Vladimir Putin, adding political weight to the decision.

When asked about investments in satellite development, Gref pointed to AI spending as a limiting factor.

Cost Pressure and AI Investment

Sberbank spends about $1,000,000,000 each year on AI systems. Gref described AI as expensive but necessary, suggesting that cost cutting elsewhere was unavoidable.

From his perspective, reducing staff and closing inefficient projects frees up resources for long term competitiveness.

Putin’s Response and Public Debate

President Putin challenged the idea of inefficient employees, stating that poor management often leads to underperformance.

This exchange highlighted a broader debate in Russia about accountability. Is AI revealing inefficiency, or is it masking leadership decisions behind technology?

The public nature of this discussion shows that AI driven layoffs are not just corporate choices but political and social issues.

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What This Means for the Future of Work in Banking

Sberbank’s decision reflects a wider shift in how banks view labor. Automation is moving beyond routine tasks and into evaluation and decision making roles.

Changing Skill Requirements

As AI takes over analysis and operations, banks may prioritize:

• Technical and data literacy

• Oversight and strategy roles

• AI system management and compliance

This does not eliminate human roles entirely, but it reshapes them.

Risks of Over Reliance on AI

While AI can improve efficiency, it may overlook human factors like adaptability and long term potential.

Heavy reliance on automation could also reduce morale and trust if employees feel constantly monitored by algorithms.

Sberbank’s experience may serve as a case study for banks worldwide considering similar moves.

Read Also: Who is Eric Vaughan? The AI Boss Behind Massive Layoffs

Conclusion

Sberbank cutting 20% of its staff using AI marks a turning point for the banking industry. It shows how artificial intelligence is no longer limited to back office support but is actively shaping workforce decisions.

While the bank frames the move as a necessary efficiency upgrade, the backlash highlights concerns around fairness, management responsibility, and job security.

As AI adoption grows, companies will need to balance cost savings with transparency and human oversight.

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FAQ

Why is Sberbank cutting 20% of its staff?

Sberbank is using AI systems to identify inefficient roles and projects as part of a broader cost reduction and automation strategy.

How much does Sberbank spend on AI each year?

The bank reportedly spends around $1,000,000,000 annually on artificial intelligence development and implementation.

When will the staff cuts be completed?

According to CEO German Gref, the workforce reduction is expected to be completed by Jan. 1, 2026.

Did President Putin support the layoffs?

Putin encouraged cost reduction through AI but disagreed with labeling employees as inefficient, pointing instead to management issues.

What does this mean for the future of banking jobs?

It suggests banks will rely more on AI, shifting demand toward technical skills while reducing traditional operational roles.

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