Morgan Stanley to cut 3% of worldwide workforce in core business lines: banking, trading, wealth

"The reductions are expected to impact some 2,500 positions out of the roughly 83,000 the firm reported at the end of 2025. The exercise is global in nature, spanning the firm's three primary business units: Institutional Securities, Wealth Management, and Investment Management. The rationale for the reduction is a combination of shifting business priorities, a revised global location strategy, and individual performance reviews."

"Notably, the person said that, while the firm's respected wealth management division is affected, the cuts in that business line are focused on 'home office' corporate roles. Financial advisors in field offices are not affected by this round of layoffs."

"The move follows a similar round of cuts last spring, when the bank reportedly trimmed approximately 2,000 roles. However, the current reductions come at a more optimistic moment for the firm's bottom line. In its most recent earnings report, Morgan Stanley posted record full-year 2025 revenues of $70.6 billion, with investment banking revenues surging 47% in the final quarter of the year."

Morgan Stanley is implementing a 3% workforce reduction affecting roughly 2,500 of its 83,000 employees globally. The cuts span all three primary business units: Institutional Securities, Wealth Management, and Investment Management. Reductions are driven by performance reviews, revised location strategy, and shifting business priorities, impacting both front-office and back-office roles. Notably, wealth management field financial advisors remain unaffected, with cuts focused on corporate home office positions. The layoffs occur despite strong financial performance, with record 2025 revenues of $70.6 billion and investment banking revenues surging 47% in the final quarter. This follows similar cuts of approximately 2,000 roles in spring of the previous year.

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