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Investment banking giant Morgan Stanley has laid off approximately 2,500 employees, roughly 3% of its global workforce. This decision is part of a broader effort to realign operations and review performance across the organization.
The development, first reported by The Wall Street Journal, marks one of the largest workforce reductions at the firm in recent months.
The bank is closing positions in various departments, including its key businesses: Institutional Securities, Wealth Management, and Investment Management.
There have been reports of layoffs across various departments, including the firm’s revenue-producing and support positions. Financial advisors have largely been immune to layoffs, according to people familiar with the matter.
The layoffs seem to be on a global scale, though the bank has not mentioned the areas where they will be the highest.
As of December 31, 2025, Morgan Stanley had close to 82,992 employees worldwide, and the bank operates in more than 40 countries.
Unlike several recent layoffs in the technology and financial sectors, the move does not appear to be directly linked to the adoption of artificial intelligence.
According to sources close to the company's internal discussions, which spoke to Business Insider, this decision comes as a result of changing business priorities, performance reviews, and a change to the bank's global location strategy.
This comes after a similar round of layoffs last year, when it was said that around 2,000 jobs were cut, partially related to performance and restructuring.
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The investment bank demonstrates strong financial results yet needs to implement workforce reductions.
Morgan Stanley achieved record annual revenue of $70.6 billion for 2025, while its investment banking division experienced a 47% revenue increase during the fourth quarter.
The current workforce reductions demonstrate how financial institutions worldwide implement budget cuts and restructure their teams to align their workforces with future business objectives.
The bank planned to start its workforce reductions in early March, but it has not disclosed the specific dates for this process.
