Morgan Stanley is set to lay off around 2,000 employees later this month as part of an effort to improve operational efficiency, sources say.
Sources familiar with the matter told Reuters the cuts, affecting 2% to 3% of the company’s workforce, will exclude financial advisers.
At the end of 2024, the Wall Street giant employed over 80,000 people worldwide.
The source stressed the layoffs are not linked to current market conditions.
Wall Street Job Cuts on the Rise
Morgan Stanley’s decision comes amid a wave of layoffs across major financial institutions.
Many banks are adjusting their workforce in response to an uncertain economic landscape following President Donald Trump’s recently announced tariffs.
- Goldman Sachs (GS.N) is accelerating its annual performance review process, with plans to reduce staffing by 3% to 5%.
- Bank of America (BAC.N) has already cut 150 junior investment banking roles, according to reports earlier this month.
Bloomberg News was the first to report Morgan Stanley’s layoffs.
Performance and Location Shifts Drive Cuts
Some of the job reductions at Morgan Stanley are linked to employee performance, while others stem from changes in the bank’s office locations, Bloomberg reported.
Wall Street had anticipated a rebound in capital markets activity after Trump’s re-election, but policy uncertainties—particularly regarding tariffs—have kept dealmaking and equity issuance sluggish.
Speaking at a conference on Tuesday, Morgan Stanley Co-President Daniel Simkowitz acknowledged the slowdown, stating that mergers, acquisitions, and new stock issues are “on pause” due to policy concerns. However, he noted that the bank is still hiring at senior levels in its investment banking division.
