Morgan Stanley to Lay Off 2,000 Employees in Restructuring Move

Wall Street giant Morgan Stanley is set to lay off approximately 2,000 employees later this month, according to a Reuters report. The job cuts, affecting 2% to 3% of the firm’s workforce—excluding financial advisers—are part of efforts to enhance operational efficiency, a source revealed under anonymity.

As of late 2024, Morgan Stanley employed over 80,000 people worldwide. The layoffs are reportedly not linked to current market conditions.

At a recent conference, Morgan Stanley Co-President Daniel Simkowitz noted that new equity offerings and mergers and acquisitions have slowed due to ongoing policy uncertainties.

According to Simkowitz, the bank was nevertheless increasing the number of “real headcount” at the top of its investment banking division.

As Wall Street bankers brace for an uncertain economic climate, particularly in the wake of President Donald Trump’s recently announced tariffs against trading partners, the bank’s action comes after a series of layoffs in recent weeks.

Competitor Goldman Sachs intends to reduce its workforce by 3% to 5% and has introduced its yearly performance assessment procedure.

Bank of America has already eliminated 150 junior banker positions in its investment banking division, according to reports from Reuters and Bloomberg News.

The job cuts at Morgan Stanley are partly performance-related and also influenced by shifts in the bank’s operational locations. Meanwhile, Wall Street firms had anticipated a strong recovery in capital markets following Donald Trump’s election. However, persistent uncertainty over the president’s fluctuating tariff policies has dampened client activity, leading to cautious moves by major financial institutions.