Morgan Stanley (MS) is eliminating roughly 3% of its global workforce, or about 2,500 jobs, The Wall Street Journal reported Wednesday, citing people familiar with the matter.
Shares of Morgan Stanley (MS) have risen about 38% in the past 12 months.
The layoffs are affecting employees across the bank’s three main business units: investment banking and trading, wealth management and investment management. The reductions reflect a combination of evolving business priorities, geographic adjustments and individual performance considerations. The cuts are taking place in both the U.S. and international offices.
Many of the job reductions occurred Wednesday, though the process began last week, the Journal reported. Morgan Stanley has conducted several rounds of staff reductions in recent years.
Within the wealth-management unit, the layoffs include private bankers and certain operational roles. Some affected employees were involved in providing mortgages and related lending services to wealthy clients.
The staffing changes come after a strong financial year for the firm. Morgan Stanley (MS), which employs roughly 83,000 people, reported record annual revenue in 2025 from its investment banking and trading business as well as from its wealth-management division.
Industrywide, large financial institutions experienced one of their strongest years in 2025, fueled by a rebound in corporate dealmaking, active trading during volatile markets and continued spending by wealthy clients.
Morgan Stanley’s (MS) wealth-management unit, which typically generates close to half of the firm’s overall revenue, reported a 13% increase in revenue in the fourth quarter.
The layoffs also come amid a broader wave of white-collar job cuts across corporate America. Many companies have pointed to productivity gains from artificial intelligence as a factor behind workforce reductions.
Last month, Jack Dorsey said Block (XYZ) would cut about 40% of its workforce, more than 4,000 employees, arguing that rapidly improving AI systems are enabling the company to operate with fewer staff. Some analysts have questioned that explanation, suggesting the move may primarily reflect an effort to reduce costs at an organization seen as overstaffed.
Other technology companies have also cited AI as part of restructuring efforts. Salesforce (CRM) eliminated roughly 4,000 customer-support roles last year, while Pinterest (PINS) has said it plans to cut nearly 15% of its workforce as it reallocates resources toward AI-related positions.