The wave of layoffs sweeping through tech, media, and government sectors has now hit Wall Street. Investment banking giant Morgan Stanley is reportedly preparing to cut approximately 2,000 jobs from its workforce, according to multiple media sources.
What’s Happening at Morgan Stanley
The job cuts are expected to affect workers across most divisions of the company, which currently employs around 80,000 people worldwide. One notable exception appears to be the firm’s financial advisors—a group of roughly 15,000 employees who will reportedly be spared from these cuts.
This means the 2,000 positions being eliminated will come from the remaining 65,000 workers, representing approximately 2.5% of Morgan Stanley’s total workforce. While the company has not officially announced these layoffs, the news has been reported by multiple reliable sources.
Behind the Cuts
These layoffs come about a year after Ted Pick took over as Morgan Stanley’s CEO and a few months after he was appointed chairman. According to insiders, the cuts are primarily aimed at controlling costs in an environment where the company is experiencing unusually low voluntary attrition rates.
Workers will reportedly be selected for layoffs based on several criteria, including performance and location. Interestingly, a small number of positions that can now be handled by AI technology will also be eliminated.
Wall Street’s Broader Landscape Under Trump
Despite the common assumption that Republican presidencies typically benefit Wall Street, the financial sector has faced challenges since President Trump’s inauguration earlier this year. The stock market has struggled, largely due to concerns about Trump’s tariff threats against major trading partners including Mexico, Canada, and other nations.
Many economists worry that escalating tariff disputes could trigger a global trade war with far-reaching economic consequences. Additionally, the administration’s support for large-scale federal employee layoffs—recommended by the Department of Government Efficiency (DOGE)—could potentially create ripple effects throughout the economy.
However, sources close to the Morgan Stanley situation indicate that these particular layoffs are not directly linked to current market conditions.
Industry-Wide Trend
Morgan Stanley isn’t alone in reducing its workforce. Other major players on Wall Street are making similar moves:
- Goldman Sachs has announced plans to lay off 3% to 5% of its staff
- Bank of America has already cut 150 positions in its investment banking division
Morgan Stanley’s Stock Performance
Despite the layoff news, Morgan Stanley’s stock has remained relatively stable in the short term. However, the company’s shares are down approximately 6% since the beginning of 2025, having fallen from over $137 after Trump’s inauguration to $118.11 in recent trading.
Looking at the bigger picture, longer-term investors have seen positive results, with Morgan Stanley shares up more than 34% over the past twelve months.
As the financial services industry continues to adapt to changing market conditions, technological advancements, and political uncertainties, more adjustments may be on the horizon for Wall Street’s workforce.
