Investment banking giant Morgan Stanley has laid off about 2,500 people — roughly 3% of its workforce.
The development was first reported by The Wall Street Journal on Wednesday afternoon, which cited people familiar with the matter.
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, Morgan Stanley's financial advisors are not affected, WSJ reported, citing its source.
The layoffs impact both front-office, revenue-generating roles and back-office support positions, reported Business Insider.
While reports suggest that the job cuts are global in scope, the bank has not specified 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 implementing layoffs in early March, though no exact date has been confirmed, reported Business Insider, citing a person familiar with the situation at the investment banking giant.
Why are jobs being cut?
Thousands of job cuts of late have been linked to the growing adoption of artificial intelligence (AI), with Jack Dorsey's Block among the recent major firms to trim its workforce — last week, the company announced it would lay off 4,000 of its 10,000-strong workforce due to the growing capabilities of AI.
However, it appears that Morgan Stanley's decision to trim its workforce is not related to AI.
Morgan Stanley cut 2,500 jobs based on shifting business priorities, a revised global location strategy, and individual performance reviews, Business Insider reported, citing the source.
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. Some of the reported job cuts at the lender were tied to employee performance, while others were the result of changes to locations where the bank bases some of its workers.
Morgan Stanley, as of 31 December 2025, had a global workforce of 82,992 people, with a presence in over 40 countries.
