Morgan Stanley is preparing to lay off approximately 2,500 employees, even as the investment bank recently reported some of its strongest financial results to date. The job reductions represent about 3% of the company’s global workforce.
According to reports from The Wall Street Journal, the layoffs will affect multiple areas of the business, including the bank’s major divisions such as investment banking and trading, asset management, and wealth management. Sources familiar with the plan said the cuts are expected to take place across several regions, including both the United States and international offices.
The decision comes despite Morgan Stanley recording record annual revenue last year, driven by strong activity in investment banking and asset management. Major Wall Street firms have benefited from increased corporate dealmaking, higher trading volumes during market volatility, and continued investment activity from wealthy clients.
At the same time, large companies across several industries have been reducing clerical and operational roles as they seek greater efficiency, with some citing the growing use of artificial intelligence tools.
Recent examples include payments company Block, which announced plans to cut more than 4,000 jobs, and software firm Salesforce, which previously eliminated around 4,000 customer support positions while expanding its AI capabilities. Social media company Pinterest has also announced layoffs affecting roughly 15% of its workforce as it redirects resources toward AI-focused initiatives.
Source: The Wall Street Journal