Morgan Stanley Layoffs Affect 3% of Workforce Amid Record Profits
Morgan Stanley has initiated a round of layoffs affecting approximately 3% of its global workforce, resulting in about 2,500 job losses.
The reductions span the bank's operations in the United States and internationally, with notifications to impacted employees beginning last week and many occurring on March 4, 2026.
Divisions Impacted by Morgan Stanley Layoffs
According to WSJ reports, these latest job cuts touch all three primary divisions at Morgan Stanley: investment banking and trading, wealth management, and investment management.
Within the wealth management unit, the layoffs include private bankers and back-office staff, along with roles involved in providing mortgages to clients. Financial advisors remain unaffected by these changes.
As of December 31, 2025, Morgan Stanley employed 82,992 people worldwide.
The current reductions equate to nearly 2,500 positions eliminated, focusing on both front-office and support functions.
The bank plans to increase headcount in select areas to align with evolving needs.
Reasons for Morgan Stanley Layoffs
The layoffs stem from adjustments in business priorities, geographic strategies, and evaluations of individual performance.
These moves follow a strong financial performance in 2025, when the firm achieved record annual revenue in its investment banking and trading division, as well as in wealth management.
Fourth-quarter revenue in wealth management rose 13% year-over-year, contributing nearly half of the company's total revenue.
CEO Ted Pick received a 32% compensation increase for 2025, reaching $45 million.
Morgan Stanley's actions align with ongoing workforce adjustments across Wall Street firms, where thousands of positions have been eliminated in the past year.
