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Investment banking giant Morgan Stanley has laid off about 3% of its global workforce, or roughly 2,500 employees, according to media reports, in the latest sign of restructuring across Wall Street as firms recalibrate operations.
The layoffs span the bank’s three main divisions — investment banking and trading, wealth management and investment management — though they do not affect its financial advisers, according to people familiar with the matter cited in reports by Reuters and The Wall Street Journal.
The reductions are tied to shifting business priorities, location strategies and individual job performance, and are affecting employees both in the United States and overseas.
Many of the job cuts occurred on Wednesday, though the process began last week, people familiar with the matter said, WSJ reported.
As of the end of December, Morgan Stanley employed nearly 83,000 people globally.
In the bank’s wealth management division, layoffs have included private bankers and back-office staff, according to the reports.
Some employees affected were involved in providing mortgage services to wealth-management clients.
Job cuts take place despite Morgan Stanley posting record earnings
The job cuts come even as Morgan Stanley has reported strong financial performance in recent months.
The bank recorded a banner year in 2025, posting record annual revenue.
It also beat Wall Street expectations for fourth-quarter profit earlier this year, helped by a sharp rebound in dealmaking activity.
Investment banking revenue surged 47% during the quarter, while debt underwriting fees nearly doubled.
Banking executives have struck an optimistic tone about the outlook for 2026, pointing to strong pipelines for mergers and acquisitions as well as potential initial public offerings.
At the same time, turbulent global markets have continued to support trading activity at major banks.
Concerns about geopolitical tensions and disruption from artificial intelligence have prompted clients to rebalance portfolios and hedge risks, boosting demand for trading services.
People familiar with the matter said the layoffs reflect a combination of strategy and performance reviews, adding that the bank still plans to hire in selected areas.
Corporate layoffs spread amid AI shift
Morgan Stanley’s cuts come amid a broader wave of layoffs across corporate America as companies streamline operations and accelerate the adoption of artificial intelligence tools.
Payments company Block Inc., led by Jack Dorsey, said last month it had eliminated more than 4,000 jobs as part of an overhaul aimed at embedding AI across its operations.
Other technology companies have also reduced headcount.
Salesforce cut thousands of customer-support roles last year, while Pinterest has announced plans to lay off about 15% of its workforce.
Retail and technology giant Amazon has also disclosed a series of workforce reductions in recent months totaling roughly 30,000 positions.
Within the banking sector, Wells Fargo recently reported quarterly profits that missed Wall Street expectations, partly due to higher severance costs after laying off about 5,600 employees.
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