Morgan Stanley is planning to lay off approximately 2,000 employees later this month, according to Reuters. The job cuts represent about 2% to 3% of the company’s workforce, excluding financial advisers. The reduction is intended to improve operational efficiency, according to an anonymous source.
Company Workforce and Market Conditions
At the end of 2024, Morgan Stanley employed over 80,000 people worldwide. The layoffs are not connected to current market conditions, the source added. Despite this, Co-President Daniel Simkowitz stated at a conference that equity issues and mergers and acquisitions are “certainly a bit on pause.” He added that the bar is set high due to policy uncertainties. However, Simkowitz noted that the bank continues to add “real headcount” at senior levels within its investment banking division.
A Trend Among Wall Street Lenders
Morgan Stanley’s move follows a series of job cuts by other Wall Street banks. These include rival Goldman Sachs, which plans to reduce its workforce by 3% to 5%. Additionally, Bank of America recently eliminated 150 junior banker roles in its investment banking division. These actions are seen as preparations for an uncertain economic environment, particularly after President Donald Trump’s newly announced tariffs.
Layoffs Tied to Performance and Location Changes
Bloomberg News, which first reported the layoffs at Morgan Stanley, indicated that some of the job cuts will be performance-based. Others will result from changes to the locations where some of the bank’s employees are based.
Capital Markets Activity Slows Amid Policy Uncertainty
Bankers had expected a strong recovery in capital markets after Trump’s election. However, that optimism has not yet materialized. Clients are struggling to navigate the president’s fluctuating tariff policies, which has dampened activity in the sector.
