About 2,500 employees have been laid off by Morgan Stanley, an international investment bank. The job cuts represent around 3 percent of the company's total workforce. The decision became public on March 4 after a report by The Wall Street Journal, which cited a source familiar with the matter.
The layoffs have affected multiple divisions across the organisation. However, the company's financial advisors have been excluded from the job cuts. Reports indicate that the layoffs are part of a broader restructuring effort as the company reviews business priorities and employee performance.
Layoffs across key business divisions
According to reports, the layoffs have impacted several major business segments of Morgan Stanley. These include Institutional Securities, Wealth Management, and Investment Management.
A report by Business Insider stated that both front-office and back-office roles were affected. Front-office positions are typically responsible for generating revenue, while back-office staff provide operational and administrative support.
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The layoffs are believed to be global. However, the company has not publicly specified which countries or regions have been most affected. The organisation operates in more than 40 countries and maintains a large international workforce.
Job cuts despite strong financial results
The decision comes despite strong financial performance by the bank. According to the company's latest earnings report, Morgan Stanley recorded total revenue of $70.6 billion in fiscal year 2025.
In the most recent quarter, the firm's investment banking revenue increased by about 47 per cent. The layoffs, therefore, come at a time when the company's core business performance remains strong.
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In recent months, several global companies have cited increased use of artificial intelligence as a reason for workforce reductions. However, reports indicate that this was not the primary factor behind Morgan Stanley's decision.
Instead, the company reportedly implemented the layoffs as part of strategic realignment at the global level. Changes in business priorities and evaluation of employees' individual performance were also cited as factors behind the move.
This is not the first round of job cuts at the firm. Last year, the company also laid off around 2,000 employees.
As of December 31, 2025, Morgan Stanley employed 82,992 people worldwide, according to company data.
