Overview

• 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.