Morgan Stanley cuts about 2,500 jobs across global divisions
Synopsis
Morgan Stanley has reduced its workforce by about 2,500 employees globally, representing roughly three percent of its total staff. The layoffs affect investment banking, trading, wealth management and investment management divisions but exclude financial advisers. The bank had nearly 83,000 employees worldwide at the end of 2025. The job cuts come despite strong financial performance, including record annual revenue reported by the Wall Street lender last year.
Morgan Stanley has laid off about 2,500 employees, or roughly 3% of its workforce, across multiple divisions globally. Financial advisers were not affected. The reductions follow a strong financial year for the bank, which reported record revenue in 2025 and strong investment banking growth during the fourth quarter.
Key Highlights
- Morgan Stanley layoffs affect about 2,500 employees across global operations.
- Job cuts represent roughly 3% of the bank’s workforce of nearly 83,000 employees.
- Workforce reductions exclude financial advisers in the wealth management business.
- The bank reported record revenue of about $70.6 billion in 2025.
Morgan Stanley has cut about 2,500 jobs across its global workforce, reducing roughly 3% of its staff as the Wall Street bank reshapes staffing levels across key divisions.
The layoffs affect employees in the firm’s investment banking and trading unit, wealth management business and investment management division, according to people familiar with the matter. Financial advisers, who form a large part of the bank’s wealth management network, were not included in the job cuts. The development was first reported by The Wall Street Journal.
Morgan Stanley employed 82,992 people worldwide at the end of 2025, meaning the layoffs account for about three per cent of its global workforce.
Job cuts spread across global operations
The workforce reduction affects multiple regions where Morgan Stanley operates, including North America, Europe and Asia-Pacific. The bank runs major financial hubs in cities such as New York, London, Hong Kong, Singapore and Tokyo, reflecting its presence in more than 40 countries.
People familiar with the decision said the layoffs are tied to internal workforce adjustments, geographic resource allocation and performance reviews. The bank is also expected to continue hiring selectively in certain areas as it reallocates staff to priority businesses.
Strong financial results in recent years
The layoffs come despite strong financial results for the bank. Morgan Stanley reported record annual revenue of about $70.6 billion in 2025, while net income reached roughly $16.9 billion during the year.
Investment banking activity also improved during the period. Revenue from the division increased 47% in the fourth quarter of 2025, supported by stronger dealmaking and debt underwriting activity.
The bank’s wealth management unit, which oversees trillions of dollars in client assets, has been a key driver of its earnings in recent years.
Part of the wider Wall Street workforce adjustments
Morgan Stanley’s workforce reduction reflects a broader pattern across the global banking industry, where firms periodically adjust staffing levels in response to market activity and internal restructuring.
Data from Challenger, Grey & Christmas, which tracks job cuts in the United States, has shown rising layoffs across several sectors, including financial services, as companies review costs and staffing structures.
Large banks often reassess hiring and workforce levels during shifts in capital markets activity, particularly when dealmaking cycles change.
Quick FAQs
Q1. How many employees did Morgan Stanley lay off?
Morgan Stanley laid off about 2,500 employees, representing roughly 3% of its global workforce.
Q2. Which divisions were affected by the Morgan Stanley layoffs?
Investment banking, trading, wealth management and investment management divisions were affected.
Q3. Were Morgan Stanley financial advisers affected by the layoffs?
No, the layoffs did not include the bank’s financial adviser workforce.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
