New York, March 4, 2026, 17:41 EST
- Morgan Stanley has laid off about 2,500 staff across the firm, according to a Wall Street Journal report
- Cuts span investment banking and trading, wealth management and investment management
- Morgan Stanley did not immediately comment; Reuters could not independently verify the report
Morgan Stanley has laid off 2,500 employees across all divisions, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. Morgan Stanley did not immediately respond to a Reuters request for comment, and Reuters could not independently verify the report. 1
The Journal said the cuts amount to roughly 3% of Morgan Stanley’s workforce of about 83,000 and have rolled out since last week, with many landing on Wednesday. The reductions are tied to shifting business and location priorities and individual performance, the report said, and include private bankers, back-office support staff and some mortgage-related roles in wealth management. 2
The timing is awkward for a bank that just came off what the Journal described as a banner 2025, with record annual revenue in its investment banking and trading division and in its wealth unit. It also shows how broadly banks can cut when they are not pinning the blame on one desk or one region.
Morgan Stanley’s three main divisions cover the firm’s deal and markets business, its advice and services for wealthy clients, and its asset-management arm. Cutting across all three suggests the bank is trimming in several places at once, not just one soft patch.
Morgan Stanley has used headcount reductions before to keep costs in check. In March 2025, Reuters reported the bank was planning to lay off about 2,000 employees in a move aimed at improving operational efficiency. 3
Rivals have also been talking more openly about staffing and technology-driven efficiency. Wells Fargo CEO Charlie Scharf said in December that the bank expected to have fewer employees going into 2026, adding that artificial intelligence “is going to potentially do” something “to headcount.” 4
At Goldman Sachs, CEO David Solomon said this week that the impact of AI on staffing would be “complicated,” and argued the headcount “won’t necessarily be that different” — “it’ll just be more productive.” 5
But job cuts that sweep across major units can carry their own risks. They can unsettle teams and clients, especially in wealth management, and leave a bank short-staffed if activity snaps back in trading or dealmaking.
Morgan Stanley has not publicly detailed the scope of the latest reductions beyond what was described in the Journal report. For now, the tally stands at about 2,500 jobs, with the heaviest wave reported on Wednesday.
