US banking giant Morgan Stanley lays off 2,500 staff worldwide

Morgan Stanley, a major Wall Street investment bank, is laying off 2,500 employees across its business lines, despite having just posted its highest-ever profit in 2025.

Reuters reported, citing a person familiar with the matter, that Morgan Stanley has announced global job cuts of around 2,500 positions, or about 3% of its total workforce.

The layoffs are across the bank’s three core businesses — investment banking and trading, wealth management, and investment management — but the bank said the cuts will not affect its financial adviser business.

The workforce reduction follows Morgan Stanley’s report of “record-high” profits last year, and an increase of 32% in compensation for chief executive officer (CEO) Ted Pick.

In January, the company reported fourth-quarter profit above Wall Street analysts’ expectations, supported by a 47% rise in investment banking revenue from a surge in dealmaking and debt underwriting fees that nearly doubled.

Executives at the investment banking group have also signalled a positive outlook for 2026, citing strong momentum in deal flow, including mergers and acquisitions (M&A) as well as initial public offerings (IPOs).

Meanwhile, market volatility driven by concerns that artificial intelligence (AI) could disrupt legacy technology businesses, together with geopolitical tensions, has continued to support the bank’s trading business as clients adjust portfolios to hedge risks.

The source said the job cuts are based on corporate strategy and individual employee performance. The bank also plans to increase headcount in some areas instead.

As of the end of 2025, Morgan Stanley had 82,992 employees worldwide.

The Wall Street Journal first reported news of the job cuts at Morgan Stanley.

Since the start of 2026, many US companies have carried out “mass layoffs” as they accelerate restructuring amid increased adoption of AI tools.

Late last month, payments firm Block, led by Jack Dorsey, said it had cut more than 4,000 jobs — nearly half of its workforce — as part of an overhaul to embed AI across its operations.