Morgan Stanley Plans to Lay Off 2,000 Employees in Cost-Cutting Push

The layoffs, representing 2.5% of the workforce, reflect pressures from low attrition rates, automation, and a challenging economic environment.

Morgan Stanley is preparing to eliminate approximately 2,000 positions, equivalent to 2.5% of its workforce, as part of a cost-reduction strategy.
The layoffs will affect various departments but exclude the firm's 15,000 financial advisors, focusing instead on performance, location, and roles impacted by automation and AI.
The decision stems from low employee turnover, reduced merger and acquisition activity, and economic uncertainties tied to U.S. trade policies.
Co-President Dan Simkowitz confirmed that merger and acquisition activity and equity issuances are currently paused due to market conditions.
Morgan Stanley's stock has declined by 6% in 2025, making it the worst-performing stock among major U.S. banks this year.