Wall Street giant trims about 3% of staff despite record revenue year as it reshapes strategy and operations
Morgan Stanley is eliminating roughly 2,500 jobs across its global workforce, a move affecting about three percent of employees as the Wall Street giant adjusts its structure and priorities.
The layoffs will span all of the bank’s main business units — investment banking and trading, wealth management, and investment management — and will occur in both US and international offices, according to sources first cited by the Wall Street Journal.
The cuts come even as the firm recently delivered one of its strongest financial performances. Morgan Stanley recorded a record year in 2025, boosted by strong dealmaking activity and rising revenue from its banking and trading businesses.
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The Journal’s sources said the cuts would impact roles ranging from private bankers to certain back-office positions, including some jobs within the wealth management division including private bankers, support staff, and some mortgage-related roles. Reuters reported that the layoffs will not affect financial advisors.
Morgan Stanley employs about 83,000 people worldwide, meaning the reductions amount to a relatively small portion of its workforce but will still affect thousands of employees across departments.
According to reports, the move reflects a broader realignment across the firm rather than a response to immediate financial weakness. Even with layoffs underway, Morgan Stanley is expected to continue hiring in some areas where it sees future growth.
The restructuring also mirrors a wider trend among major corporations that are reevaluating staffing levels as they adopt new technologies and seek efficiency gains. Reuters noted that companies across industries have announced job cuts in recent months as artificial intelligence tools reshape workflows and productivity. Jack Dorsey recently announced plans to slash 40% of the workforce at Block - a total of 4,000 employees - citing rapidly improving AI models, Pinterest has said it will lay off 15% of its workforce for similar reasons, and Salesforce said it has reshaped its customer support function over the past year.
Despite the job reductions, Morgan Stanley’s leadership has pointed to a solid pipeline for deals and continued opportunities in global markets, suggesting the layoffs are part of a longer-term strategy to reposition the firm rather than a sign of declining business activity.
