Morgan Stanley cuts 2,500 jobs worldwide in multiple divisions; Here's why

Morgan Stanley has reportedly laid off more than 2,500 employees globally. This is roughly 3 percent of its total workforce. The job cuts were first reported by The Wall Street Journal, although the investment bank has not publicly confirmed the layoffs so far. Also Read: Oracle layoffs 2026: 30,000 Jobs in fear to fund AI data centres

What makes the decision stand out is the timing. Layoffs across the financial and tech sectors are increasingly being linked to automation and artificial intelligence. However, according to reports, Morgan Stanley says AI is not behind these cuts. Also Read: Mark Zuckerberg’s AI comment raises fresh questions about jobs at Meta: Here’s what he said

Which roles were affected

As per reports citing sources familiar with the matter, the layoffs impacted several major divisions within the company. These include investment banking, trading, wealth management, and investment management teams. Also Read: Amazon job cuts in 2026: 16,000 roles impacted as AI push continues

However, the bank’s financial advisors were not affected by the move. It is also not clear which regions saw the most job losses, as the company has not disclosed a detailed breakdown. Morgan Stanley had around 82,992 employees worldwide as of December 2025, which means the latest cuts represent a relatively small portion of its overall workforce.

Why did the layoffs happen?

In recent months, many companies have blamed job cuts on AI adoption or automation. But in Morgan Stanley’s case, reports suggest the layoffs are instead linked to internal strategy adjustments and performance reviews. According to Reuters, the firm is restructuring certain roles and may hire for other positions, suggesting the layoffs are more about redistributing headcount than permanently shrinking the organisation.

Interestingly, the layoffs come after a strong financial year for Morgan Stanley. The bank reported record annual revenue in 2025, supported by a sharp rebound in investment banking activity. During the fourth quarter alone, investment banking revenue jumped by 47 percent, driven by increased dealmaking and a surge in debt-underwriting fees.

Bank executives have also shared a positive outlook for 2026, with expectations of strong pipelines for mergers, acquisitions, and IPO activity.

Tech layoffs

Even though Morgan Stanley says AI is not responsible here, the broader market tells a different story. Several companies across the finance and tech sectors have been reducing workforce while expanding AI initiatives.

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Recently, Amazon has even announced a massive layoffs in its robotics division in the process of restructuring its workforce. However, the number of affected employees hasn’t been revealed.