Morgan Stanley layoffs: 2,500 jobs cut despite $70.6 bn revenue; Who is affected, when cuts begin - What we know so far
The layoffs have surprised many observers because the bank posted record full-year revenue of $70.6 billion in 2025 and saw a surge in dealmaking activity that boosted its investment banking business
- Mar 5, 2026,
- Updated Mar 5, 2026 9:49 AM IST
Investment banking giant Morgan Stanley has announced job cuts affecting about 3% of its global workforce, roughly 2,500 employees, even as the bank reported one of the strongest financial years in its history.
The layoffs have surprised many observers because the bank posted record full-year revenue of $70.6 billion in 2025 and saw a surge in dealmaking activity that boosted its investment banking business.
Who is affected by Morgan Stanley layoffs?
The layoffs affect employees across the bank’s three core divisions:
-
Institutional Securities (investment banking and trading)
-
Wealth Management
-
Investment Management
However, the cuts do not include the bank’s financial advisors, Reuters reported.
The reductions are expected to affect both front-office revenue-generating roles and back-office support functions, although the exact geographic impact has not yet been disclosed.
As of December 31, 2025, Morgan Stanley employed 82,992 people globally and operates in more than 40 countries.
The Wall Street Journal first reported the layoffs.
When will the Morgan Stanley layoffs take place?
The layoffs are expected to begin in early March, according to a report by Business Insider. However, no specific timeline has been publicly confirmed by the bank.
Why is Morgan Stanley cutting jobs?
Despite strong earnings, the job cuts appear to be part of a broader restructuring effort rather than a reaction to financial weakness.
The cuts are based on strategy and individual performance, and the bank intends to add headcount in other areas, Reuters stated.
The layoffs are also tied to shifting business priorities and changes in the bank’s global location strategy, according to reports citing internal sources.
Morgan Stanley carried out a similar round of workforce reductions last year, when it cut around 2,000 roles, partly due to performance reviews and operational adjustments.
Why layoffs despite strong financial results?
The layoffs may seem surprising, given that Morgan Stanley had a very strong financial year.
The bank reported record revenue of $70.6 billion in 2025 and exceeded Wall Street expectations in the fourth quarter.
A major reason for this growth was a 47% jump in investment banking revenue, as dealmaking activity picked up again and fees from helping companies raise debt almost doubled.
Bank executives have also sounded confident about the outlook for 2026, pointing to a healthy pipeline of mergers and acquisitions as well as companies preparing to launch initial public offerings.
At the same time, volatile global markets and geopolitical tensions have increased trading activity. Investors have been adjusting their portfolios to protect themselves from risks, which has helped boost the bank’s trading business.
(With inputs from Reuters)
Investment banking giant Morgan Stanley has announced job cuts affecting about 3% of its global workforce, roughly 2,500 employees, even as the bank reported one of the strongest financial years in its history.
The layoffs have surprised many observers because the bank posted record full-year revenue of $70.6 billion in 2025 and saw a surge in dealmaking activity that boosted its investment banking business.
Who is affected by Morgan Stanley layoffs?
The layoffs affect employees across the bank’s three core divisions:
-
Institutional Securities (investment banking and trading)
-
Wealth Management
-
Investment Management
However, the cuts do not include the bank’s financial advisors, Reuters reported.
The reductions are expected to affect both front-office revenue-generating roles and back-office support functions, although the exact geographic impact has not yet been disclosed.
As of December 31, 2025, Morgan Stanley employed 82,992 people globally and operates in more than 40 countries.
The Wall Street Journal first reported the layoffs.
When will the Morgan Stanley layoffs take place?
The layoffs are expected to begin in early March, according to a report by Business Insider. However, no specific timeline has been publicly confirmed by the bank.
Why is Morgan Stanley cutting jobs?
Despite strong earnings, the job cuts appear to be part of a broader restructuring effort rather than a reaction to financial weakness.
The cuts are based on strategy and individual performance, and the bank intends to add headcount in other areas, Reuters stated.
The layoffs are also tied to shifting business priorities and changes in the bank’s global location strategy, according to reports citing internal sources.
Morgan Stanley carried out a similar round of workforce reductions last year, when it cut around 2,000 roles, partly due to performance reviews and operational adjustments.
Why layoffs despite strong financial results?
The layoffs may seem surprising, given that Morgan Stanley had a very strong financial year.
The bank reported record revenue of $70.6 billion in 2025 and exceeded Wall Street expectations in the fourth quarter.
A major reason for this growth was a 47% jump in investment banking revenue, as dealmaking activity picked up again and fees from helping companies raise debt almost doubled.
Bank executives have also sounded confident about the outlook for 2026, pointing to a healthy pipeline of mergers and acquisitions as well as companies preparing to launch initial public offerings.
At the same time, volatile global markets and geopolitical tensions have increased trading activity. Investors have been adjusting their portfolios to protect themselves from risks, which has helped boost the bank’s trading business.
(With inputs from Reuters)