Morgan Stanley to Lay Off 2,000 Employees Amid Market Uncertainty and Policy Shifts
Morgan Stanley is set to lay off approximately 2,000 employees later this month, marking the first round of job cuts under CEO Ted Pick. The decision, which was reportedly made before the recent market turbulence, is part of a cost-reduction strategy for the firm, which employs around 80,000 people and has a historically low attrition rate, according to Bloomberg.
Morgan Stanley is set to lay off approximately 2,000 employees later this month, marking the first round of job cuts under CEO Ted Pick. The decision, which was reportedly made before the recent market turbulence, is part of a cost-reduction strategy for the firm, which employs around 80,000 people and has a historically low attrition rate, according to Bloomberg.
The layoffs will be implemented across various divisions but will exclude the firm’s approximately 15,000 financial advisers. The reductions stem from multiple factors, including performance-based evaluations, changes in office locations, and the growing impact of artificial intelligence (AI) and automation. AI-driven job reductions are expected to increase in the coming years as technology continues to reshape the banking sector.
Impact of Trump’s Tariffs and Policy Shifts
Market analysts suggest that U.S. President Donald Trump’s tariffs and policy changes may have contributed to a decline in client banking activity, further influencing the decision to cut jobs. The move also aligns with a broader trend of workforce reductions across Wall Street, as financial institutions navigate an uncertain economic environment. For example, Goldman Sachs recently accelerated plans to cut 3% to 5% of its workforce this spring.
Challenges in the Investment Banking Sector
Dan Simkowitz, Co-President of Morgan Stanley, acknowledged the challenges faced by the investment banking sector. On Tuesday, he noted that Merger and Acquisition (M&A) activities and new equity issuances are “certainly on pause,” reflecting the current slowdown in deal-making and capital market activities.
Morgan Stanley’s stock has fallen by 6% so far this year, making it the worst-performing stock among major U.S. banks. Despite these challenges, the bank remains committed to strengthening its investment banking sector by hiring senior professionals in anticipation of a capital-markets recovery.
Leadership and Strategic Direction
Ted Pick assumed the role of CEO at the beginning of 2024 and was later appointed chairman at the start of 2025. While he has largely adhered to the strategic framework established by his predecessor, James Gorman, these job cuts signal the firm’s adaptation to evolving economic conditions and technological advancements.
As Morgan Stanley adjusts its workforce to align with emerging trends and financial headwinds, industry experts will closely watch how the firm navigates the delicate balance between cost-cutting measures and future growth strategies.
Sources By Agencies
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