Morgan Stanley is set to lay off approximately 2,000 employees later this month, marking the first significant workforce reduction under the leadership of Chief Executive Officer Ted Pick, according to a Bloomberg report.
The cuts will impact various departments across the firm, excluding the company’s 15,000 financial advisors.
This restructuring effort, which affects about 80,000 employees globally, was planned prior to the recent market fluctuations, according to sources familiar with the matter.
The decision is part of Morgan Stanley’s strategy to manage costs and mitigate the effects of a minimal attrition rate within its workforce. Despite this move, a spokesperson for the New York-based bank declined to comment.
The layoffs come amid a broader trend of workforce reductions across Wall Street, as financial institutions navigate an uncertain economic landscape.
Goldman Sachs Group Inc., a rival to Morgan Stanley, also announced plans to reduce its workforce by 3% to 5% this spring.
Morgan Stanley’s Co-President, Dan Simkowitz, acknowledged that merger and acquisition activity and new equity issuance have slowed significantly. However, he also pointed out that the firm continues to expand its senior-level investment banking workforce in anticipation of a future market recovery, the report added.
Some of the job cuts are attributed to performance factors, while others stem from the firm’s evolving workforce strategy and shifts in location. Additionally, advancements in artificial intelligence and automation are expected to play an increasing role in future reductions.
Morgan Stanley’s shares have fallen by 6% this year, making it the worst-performing major US bank in 2025.