AI "Layoff Wave" Sweeps Through Global Systemically Important Banks Mizuho Announces 5,000 Job Cuts

While Wall Street is buzzing about fintech company Block laying off nearly half of its employees “in the name of AI,” similar stories are emerging across the Pacific.

It is reported that Mizuho Financial Group, one of Japan’s three major banks, plans to reduce up to 5,000 of its approximately 15,000 administrative positions over the next 10 years by investing in artificial intelligence to improve efficiency. Starting from the new fiscal year in April, Mizuho will rename its Administrative Group, which manages administrative staff, to the Process Design Group, aiming to strengthen the consensus on reshaping business processes through AI.

As background, Mizuho is ranked among the first group of globally systemically important banks by the Financial Stability Board (FSB), alongside China’s Bank of Communications, Deutsche Bank, and Morgan Stanley. This shows that even “too big to fail” financial giants are beginning to feel AI’s impact on employment.

(Source: FSB)

Mizuho states that the reduction of 5,000 positions will be achieved through natural attrition, controlled hiring, and other methods.

Unlike the rapid layoffs seen in American counterparts, Japanese financial giants say they will not directly dismiss employees replaced by AI but will redeploy them to bank branches to work in personal customer sales or other roles, with skills retraining support provided.

The financial group plans to invest between 50 billion and 100 billion yen in AI over the three fiscal years ending in 2028. Mizuho Bank and other institutions will officially introduce AI for tasks such as account opening, document review for remittances, and customer information registration. With the full integration of AI, the organization will also promote personnel reallocation and organizational restructuring.

Mizuho’s latest statement is a microcosm of how large Japanese companies are responding to the AI revolution.

In a public survey last year, many well-known companies believed that AI could replace a significant number of employees within five years. Among them, Japan’s largest telecom company NTT expects AI to handle over 50% of its business in five years. NTT employs over 340,000 people worldwide.

The company explained that currently, 2,500 employees handle fault reports and simple inquiries, with plans to cut this number in half by fiscal year 2027. Among them, 800 employees responsible for simple inquiries will be eliminated.

Large companies like Japan Life Insurance and Shionogi Pharmaceutical also believe that about 30% of employees/jobs could be replaced by AI.

Shionogi’s HR Director, Takashi Kawamoto, told the media that besides handling email responses, AI can assist in collecting necessary literature for drug development, as well as drafting clinical trial plans and submission materials. Based on these estimates, about 30% of internal staff could be replaced within five years. If all employees improve their efficiency with the same mindset, the replacement rate could reach 50%.

(Source: Cailian Press)