Wall Street giant Morgan Stanley is set to lay off approximately 2,000 employees later this month, Reuters reports.
The job cuts, representing about 2% to 3% of the company’s workforce—excluding financial advisers—are aimed at improving operational efficiency, according to a source who requested anonymity.
As of the end of 2024, Morgan Stanley employed over 80,000 people worldwide. The layoffs are not linked to current market conditions, the source added.
This move aligns with a broader trend among Wall Street firms, which have been reducing headcounts in recent weeks in response to economic uncertainty, particularly following President Donald Trump’s newly announced tariffs on key trading partners.
Rival Goldman Sachs has accelerated its annual performance review process and is planning to reduce staffing by 3% to 5%. Meanwhile, Bank of America recently cut 150 junior banker roles in its investment banking division, according to Reuters.
Bloomberg News first reported Morgan Stanley’s planned layoffs earlier in the day. The report noted that while some job cuts are performance-related, others stem from changes in the locations where the bank bases its employees.
Bankers had anticipated a strong rebound in capital markets following Trump’s election, but activity has remained sluggish as clients navigate ongoing tariff uncertainties.
Speaking at a conference on Tuesday, Morgan Stanley Co-President Daniel Simkowitz acknowledged the slowdown, stating that new equity issuances and mergers and acquisitions are “certainly a bit on pause, or the bar is high because of some of the policy uncertainties.” However, he noted that the bank is still hiring at senior levels within its investment banking division.