Investment banking giant Morgan Stanley has reportedly laid off 2,500 people — about 3% of its total workforce.
The development was first reported by The Wall Street Journal, which cited people familiar with the matter. It has yet to be officially confirmed.
Who is affected?
Jobs were cut across major departments of Morgan Stanley, with the layoffs affecting the bank’s three major divisions — Institutional Securities, Wealth Management, and Investment Management.
However, the job cuts will not affect Morgan Stanley’s financial advisors, WSJ reported citing its source.
The layoffs will affect both front-office, revenue-generating roles and back-office support positions, reported Business Insider.
Although it has been reported that the job cuts will be global in scope, it is unclear which geographies will be the most affected.
The layoffs come at a good time for the investment banking giant — in its most recent earnings report, Morgan Stanley posted record full-year 2025 revenues of $70.6 billion, with a 47% surge in investment banking revenues in the final quarter of the year.
When will the job cuts come into effect?
Morgan Stanley is expected to begin laying off people from early March, reported Business Insider citing a person familiar with the situation at the investment banking giant.
That said, no date was specified.
Why are jobs being cut?
Despite thousands of job cuts of late being linked to the growing adoption of artificial intelligence (AI), it appears that Morgan Stanley’s decision to trim its workforce is not related to AI.
The 2,500 job cuts were based on shifting business priorities, a revised global location strategy, and individual performance reviews, Business Insider reported citing a person familiar with the matter.
The bank’s move to trim its workforce follows a similar round of cuts last spring, when Morgan Stanley reportedly trimmed approximately 2,000 roles.
Morgan Stanley, as of 31 December 2025, had a global workforce of 82,992 people, with a presence in over 40 countries.