Morgan Stanley Planning To Layoff Almost 2,000 Employees In March, Says Report

Major US banks recently adjusted their staffing levels as they braced for economic uncertainty, particularly after President Donald Trump’s announcement of new tariffs against key trading partners.

The job cuts would account for 2 per cent to 3 per cent of the bank's global workforce, the report noted.

Source : Morgan Stanley

Layoffs continue to disrupt industries across the world and the latest name added to the job cut list is Morgan Stanley. The Wall Street major is reportedly planning to let go of nearly 2,000 employees later this month, media reports said.

The job cuts would account for 2 per cent to 3 per cent of the bank's global workforce, reported Reuters citing sources in the know. However, this figure excludes the company's financial advisers. The decision is being taken in an attempt to enhance the operational efficiency of the company, the report said.

At the end of 2024, Morgan Stanley operated a workforce exceeding 80,000 employees worldwide. Citing the source, the report commented that the layoffs are not a response to current market conditions. Instead, they are part of a broader restructuring effort to streamline operations.

Wall Street Banks Reduce Workforce Amid Uncertainty

Morgan Stanley’s decision followed a series of job cuts across Wall Street firms in recent weeks. Major banks adjusted their staffing levels as they braced for economic uncertainty, particularly after President Donald Trump’s announcement of new tariffs against key trading partners.

Goldman Sachs has released its annual performance review process and plans to reduce its headcount by 3 per cent to 5 per cent. Meanwhile, Bank of America recently eliminated 150 junior banker positions in its investment banking wing, according to a Reuters report earlier this month.

Bloomberg News was the first to report on Morgan Stanley’s planned layoffs. The report suggested that while some job cuts were linked to employee performance, others resulted from shifts in the bank’s operational locations.

Despite expectations of a strong capital markets recovery after Trump’s election, market activity remained subdued. Many clients hesitated due to policy uncertainties and shifting tariff strategies.

At a conference on Tuesday, Morgan Stanley Co-President, Daniel Simkowitz, addressed the challenges in dealmaking, and said that new equity issues and mergers and acquisitions are 'certainly a bit on pause, or the bar is high because of some of the policy uncertainties'.

However, Simkowitz noted that the bank continued to expand at the senior level, adding "real headcount" in its investment banking division despite the broader job cuts.