Morgan Stanley is cutting around 2,500 jobs, representing roughly 3 per cent of its global workforce, sources familiar with the matter have confirmed. The reductions affect key divisions including investment banking, trading, and wealth management.
Layoffs began last week and will impact both the United States and international offices. The move comes despite a record year for revenue, reflecting the bank's ongoing realignment of priorities amid a changing financial landscape.
The job cuts include private bankers and back-office staff in the wealth management division, with some roles involving client mortgages. Sources say the firm has trimmed personnel multiple times in recent years.
Wall Street peers, including Goldman Sachs and JPMorgan Chase, have similarly reduced staffas part of efficiency drives and theintegration of artificial intelligence in operations.
The job cuts were first reported byThe Wall Street Journal, which said the layoffs span all major divisions of the firm, including investment banking, trading and wealth management.
Industry analysts note that while some roles are directly client-facing, many cuts are in administrative and support positions, reflecting broader corporate strategies to optimise operations.
The bank has not released a detailed breakdown of positions affected, but employees across several regions have confirmed receiving notices.
Morgan Stanley reported record revenue in 2025, driven by a revival in dealmaking, market volatility that benefited trading desks, and increased spending from high-net-worth clients. Its wealth management unit, which generates nearly half of the firm's income, saw fourth-quarter revenue jump by 13%.
Analysts say that the decision to cut staff reflects a broader trend of firms balancing strong financial performance with cost efficiency measures rather than immediate financial necessity.
Despite the strong results, Morgan Stanley is following a pattern seen across Wall Street, where even profitable companies are streamlining workforces to remain competitive. Observers highlight that cost-cutting measures often come alongside technology adoption, which reshapes traditional roles.
Source: International Business Times UK
