Morgan Stanley cuts 2,500 jobs globally despite strong financial performance
What's the story
Morgan Stanley has laid off around 2,500 employees worldwide, according to The Wall Street Journal. The job cuts account for about 3% of the bank's global workforce and have affected staff across its three main divisions: investment banking and trading, wealth management, and investment management. The decision comes despite the bank's strong financial performance in 2025 when it recorded record annual revenue in both its investment banking and trading division as well as its wealth management business.
Global impact
Layoffs not limited to US
The layoffs at Morgan Stanley were not limited to the US but also impacted employees in other regions. The decision was made across various divisions of the bank and in several countries. However, it is worth noting that financial advisers were spared from these job cuts, indicating a focus on client-facing roles within the firm.
Strategic shift
Factors behind layoffs
The layoffs at Morgan Stanley are attributed to a combination of factors such as changing business priorities, office location changes, and employee performance evaluations. The restructuring is part of broader changes in how the bank organizes its teams and services. Within the wealth management division, private bankers and support staff who manage mortgage services for affluent clients have been affected by these cuts.
Financial outlook
Bank's executives optimistic about 2026
Despite the job cuts, Morgan Stanley's executives remain optimistic about 2026. The bank recorded a 47% surge in investment banking revenue during the year as dealmaking activity picked up significantly. Fees from debt underwriting also nearly doubled, highlighting strong momentum across several business lines. This optimism comes even as companies continue to restructure operations and invest more heavily in artificial intelligence (AI) tools amid a wider trend of corporate shifts toward efficiency and AI-driven restructuring.