Morgan Stanley Cuts 2,500 Jobs Across Key Divisions

Global financial services firm Morgan Stanley has reportedly reduced its workforce by around 2,500 employees, representing nearly 3% of its total staff.

According to a source familiar with the matter, the layoffs have affected several key divisions, including investment banking and trading, wealth management, and investment management.

Financial advisors reportedly unaffected

The workforce reduction reportedly does not impact financial advisors, according to the same source cited in reports.

The layoffs are said to be part of strategic adjustments and performance-related reviews, while the company is also planning to hire in certain other areas.

Workforce size and company performance

Morgan Stanley’s global workforce stood at 82,992 employees as of December last year.

The company had reported strong financial performance in 2025, with annual revenue reaching record levels. Its fourth-quarter profits exceeded Wall Street expectations, supported by increased activity in investment banking.

Reports indicated that investment banking revenue rose by about 47%, driven by stronger dealmaking and a rise in debt underwriting activity.

Market volatility and AI transformation

Despite the strong performance, financial markets have remained volatile due to geopolitical uncertainty and rapid changes in the technology sector, including the increasing influence of artificial intelligence.

Financial institutions across the industry are reviewing their workforce structures as companies adapt to technology-driven changes in operations.

Part of a wider trend in US companies

The layoffs at Morgan Stanley come amid broader restructuring across several US companies.

Recent reports indicate that some organisations are streamlining operations while expanding the use of AI tools and automation.

For example, payments company Block, led by Jack Dorsey, recently announced plans to cut over 4,000 roles as part of its internal restructuring strategy.

Industry analysts say companies are increasingly balancing technology investments with workforce changes as global economic conditions evolve.