Morgan Stanley has laid off about 2,500 employees, amounting to roughly 3% of its global workforce, according to a report by The Wall Street Journal. The investment banking giant has not publicly confirmed the cuts.
The layoffs span several major divisions, including investment banking and trading, wealth management and investment management, but do not affect its financial advisors, a person in know told Reuters.
It remains unclear which regions were most affected by the job cuts.
Morgan Stanley Layoffs Not Related To AI
While recent layoffs across the financial sector have frequently been linked to advances in artificial intelligence. According to the report by Reuters, Morgan Stanley's move was not driven by AI adoption, instead, the job cuts were tied to strategy and individual performance.
The report also added that the bank will fill in the headcount in the other areas.
As of Dec. 31, 2025, the firm employed 82,992 people worldwide.
Morgan Stanley Maintains Positive Outlook
Morgan Stanley has had a good year in 2025, posting record annual revenue, driven by a 47% surge in Q4 investment‑banking revenue as dealmaking accelerated and debt‑underwriting fees nearly doubled.
Banking executives have struck a positive outlook for 2026 which is supported by strong pipelines for mergers and acquisitions as well as initial public offerings. However, the markets are volatile due to concerns that AI will shake up old tech companies amid ongoing global tensions leading to investors moving their money around to protect themselves from new risks.
ALSO READ: Shadowfax Tech: Morgan Stanley Initiates Bullish Coverage With Overweight Call; Sees 50% Upside
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