Morgan Stanley is planning to lay off approximately 2,000 employees later this month, according to a Reuters report. This reduction, which represents about 2% to 3% of the company’s workforce (excluding financial advisers), is aimed at enhancing operational efficiency, a source familiar with the matter said, speaking on condition of anonymity.
The layoffs come after Morgan Stanley employed over 80,000 people globally at the end of 2024. The company emphasized that the job cuts are not linked to current market conditions, the source added.
This move follows a wave of job cuts across Wall Street as major financial institutions brace for an uncertain economic outlook, particularly in the wake of President Donald Trump’s recently announced tariffs on trading partners.
Goldman Sachs, Morgan Stanley’s rival, has already advanced its annual performance review process and plans to reduce its staff by 3% to 5%. Meanwhile, Bank of America recently eliminated 150 junior banking roles in its investment banking division, as reported by Reuters earlier this month.
Bloomberg News was the first to report on Morgan Stanley’s layoff plans earlier on Tuesday.
Some of the job reductions at Morgan Stanley are tied to employee performance, while others are related to changes in the bank’s office locations, according to Bloomberg.
Despite initial expectations for a strong rebound in capital markets following Trump’s election, that optimism has not yet translated into increased activity, as clients continue to navigate the president’s fluctuating tariff policies.
Morgan Stanley Co-President Daniel Simkowitz acknowledged at a conference on Tuesday that new equity issues and mergers and acquisitions are “certainly a bit on pause,” with the bar set high due to policy uncertainties. However, he noted that the bank is still adding “real headcount” at senior levels within its investment banking division.
