In a surprising move, global investment giant Morgan Stanley has laid off approximately 2,500 employees, representing about 3% of its total workforce. The cuts, which began earlier this month, span across key divisions including institutional securities, wealth management, and investment management. Front-office revenue-generating roles, as well as back-office positions, have been impacted, though financial advisors appear to have been spared.
According to reports, these layoffs are not driven by artificial intelligence restructuring but rather by shifting business priorities, a new global location strategy, and performance evaluations. This comes at a time when the firm reported record annual revenue of $70.6 billion for 2025, with a staggering 47% growth in the final quarter. As of December 31, 2025, Morgan Stanley employed 82,992 people across more than 40 countries.
The bank has yet to issue an official comment on the matter. Notably, this follows a similar round of about 2,000 job cuts in the spring of last year. Interestingly, Morgan Stanley’s recent report downplayed AI’s long-term threat to jobs, suggesting that while some roles may automate, most workers will transition to new opportunities, some of which don’t yet exist. AI will transform how work is done, the firm argues, but not eliminate jobs wholesale.
This wave of layoffs echoes broader industry trends. Payment firm Block, founded by Jack Dorsey, plans to halve its workforce from 10,000 to around 6,000 due to AI-driven changes. Amazon has trimmed jobs in its robotics division, affecting at least 100 white-collar positions, following 16,000 cuts in January. Oracle is reportedly eyeing 20,000 to 30,000 reductions to bolster AI data center capacity.
Tech experts warn that many computer-based white-collar jobs could face automation within the next 12 to 18 months. As firms chase efficiency and emerging technologies, employees in traditional roles are feeling the pressure, even as revenues soar. Morgan Stanley’s actions signal a strategic pivot in a rapidly evolving financial landscape.