Cost-Cutting Move: Morgan Stanley to Lay Off 2,000 Employees

Image Credit: Reuters

Morgan Stanley is set to lay off approximately 2,000 employees later this month, representing about 2% to 3% of its global workforce, excluding financial advisers. The job cuts, aimed at improving operational efficiency, are not related to current market conditions, according to a source familiar with the matter. The bank employed over 80,000 people worldwide at the end of 2024.

This move follows a trend of job reductions by Wall Street banks in recent weeks, as they brace for an uncertain economic environment, especially after President Donald Trump's new tariffs on trading partners.

Rival Goldman Sachs is also trimming its workforce by 3% to 5% following its annual performance review, while Bank of America has cut 150 junior banker positions in its investment banking division.

Some of Morgan Stanley's layoffs will be performance-related, while others are due to shifts in the bank's operational locations. Despite the job cuts, the bank continues to hire senior investment bankers, with co-president Daniel Simkowitz noting that new equity issues and M&A activities are "on pause" due to policy uncertainties.

 

 

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author