Morgan Stanley has laid off approximately 2,500 employees, representing about 3 percent of its global workforce, in a move that comes even as the investment banking giant reports strong financial performance. The layoffs were first reported by The Wall Street Journal, citing sources familiar with the matter, and were confirmed on March 4.
The job cuts span the bank’s three main divisions — Institutional Securities, Wealth Management, and Investment Management — affecting both revenue-generating front-office roles and back-office support positions. However, financial advisors working within the firm’s wealth management operations are not part of the layoffs, according to reports.
The workforce reductions are global in scope, though the company has not disclosed which regions will be most affected. With a presence in more than 40 countries, Morgan Stanley employed 82,992 people worldwide as of December 31, 2025. The layoffs are expected to begin taking effect in early March, although an exact implementation date has not been publicly confirmed.
The decision comes at a time when the bank is experiencing strong financial results. In its latest earnings report, Morgan Stanley posted record full-year 2025 revenue of $70.6 billion, including a significant 47 percent surge in investment banking revenue during the final quarter of the year.
While recent layoffs across the technology and financial sectors have often been linked to the growing adoption of artificial intelligence, sources indicate that Morgan Stanley’s job cuts are not related to AI. Instead, the reductions are reportedly driven by shifting business priorities, adjustments to the bank’s global location strategy, and employee performance reviews.
The latest round of cuts follows a similar restructuring effort last year. In the spring of 2025, Morgan Stanley reportedly eliminated about 2,000 positions, with some of those reductions tied to performance evaluations and changes in where certain operations were based.
