Mizuho(MFG.US) announces "AI Replacement" plan: cut 5,000 administrative jobs within ten years

Mizuho Financial Group (MFG.US) is planning to replace approximately 5,000 administrative positions domestically in Japan with artificial intelligence over the next decade. This third-largest bank in Japan is attempting to enhance operational efficiency through this move.

Mizuho stated in a press release: “We plan to reallocate human resources to key business areas by fully utilizing AI technology to enhance profitability. This is not a layoff.”

To improve efficiency, Japanese companies have been increasingly investing in the application of artificial intelligence in recent years, making it a key component of Prime Minister Kishida Fumio’s policy agenda. In the banking sector, institutions are seeking to advance AI programs in a way that maximizes the avoidance of significant layoffs amidst a labor shortage.

According to Mizuho, its core banking division and other group subsidiaries currently have about 15,000 administrative positions, and affected employees will be reassigned to other roles.

The global banking industry is spending heavily to apply artificial intelligence to various operations, from product development to risk management. JPMorgan Chase invests about $2 billion annually in AI technology development, stating that this investment saves it a comparable amount in expenses each year.

Japanese banking executives have been working to alleviate concerns about job displacement due to artificial intelligence. Mizuho CEO Masahiro Kihara stated last October: “I do not believe humans will lose their value; employees can focus on higher value-added work.”