Wall Street giant Morgan Stanley is set to lay off approximately 2,000 employees later this month in a move aimed at improving operational efficiency, according to a report by Reuters.
The job cuts will account for about 2% to 3% of the company’s workforce, excluding financial advisers. A source familiar with the matter, who requested anonymity, emphasized that the layoffs were not linked to current market conditions.
Morgan Stanley, which employed more than 80,000 people globally at the end of 2024, joins a growing list of Wall Street firms streamlining operations amid an uncertain economic climate.
Co-President Daniel Simkowitz, speaking at a conference on Tuesday, noted that new equity issuances and mergers and acquisitions were experiencing a slowdown due to policy uncertainties. However, he added that the bank was still increasing senior-level staff in its investment banking division.
The job reductions follow similar moves by other major financial institutions. Goldman Sachs has accelerated its annual performance review process and plans to cut 3% to 5% of its workforce, while Bank of America recently eliminated 150 junior banker roles in its investment banking division, according to Reuters.
Bloomberg News, which first reported Morgan Stanley’s planned layoffs, indicated that some job cuts are performance-related, while others are tied to shifts in the bank’s geographic workforce distribution.
Bankers had anticipated a resurgence in capital market activity following President Donald Trump’s re-election, but fluctuating tariff policies have contributed to ongoing uncertainty, delaying market recovery.
