Morgan Stanley (MS.N) has reportedly laid off approximately 3% of its global workforce, equating to around 2,500 employees. According to a source familiar with the matter, the job cuts span across the bank’s main divisions, which include investment banking and trading, wealth management, and investment management. However, the reductions do not affect the company’s financial advisors. Morgan Stanley is a global investment bank and financial services firm that provides a wide range of services to corporations, governments, institutions, and individuals. It offers services such as investment banking, wealth management, and trading.
The decision to reduce headcount follows a successful financial year for Morgan Stanley. The company recorded record annual revenue in 2025 and surpassed Wall Street’s projections for fourth-quarter profit earlier this year. This success was largely fuelled by a significant 47% increase in investment banking revenue, driven by a surge in dealmaking activity and a near doubling of debt underwriting fees.
Despite the positive performance and optimistic outlook from banking executives regarding mergers, acquisitions, and IPOs for 2026, the current market volatility, influenced by concerns about AI disruption and geopolitical uncertainties, continues to impact business strategies. The job cuts are reportedly based on strategic considerations and individual performance. The source indicated that the company intends to increase staff numbers in other areas.
The Wall Street Journal initially reported the news of the layoffs at Morgan Stanley, which had a global workforce of 82,992 at the end of December. This move aligns with a broader trend of significant layoffs across U.S. companies as they optimise operations amidst the increasing adoption of artificial intelligence. Late last month, Block (XYZ.N), the payments firm led by Jack Dorsey, announced it had eliminated over 4,000 positions, representing nearly half of its workforce, as part of a comprehensive restructuring to integrate AI throughout its operations.
