New York, March 4, 2026, 17:41 EST
- Morgan Stanley has cut roughly 2,500 jobs firmwide, the Wall Street Journal reported.
- Investment banking, trading, wealth management, and investment management are all seeing cuts.
- Reuters was unable to independently verify the report. Morgan Stanley did not offer immediate comment.
Morgan Stanley has cut 2,500 jobs throughout its divisions, according to the Wall Street Journal, which cited sources with knowledge of the situation. The bank hasn’t responded to a Reuters request for comment, and Reuters said it was unable to confirm the Journal’s report.
The Journal reports Morgan Stanley has cut around 3% of its 83,000 employees, most of those layoffs hitting on Wednesday after starting last week. The staff reductions target private bankers, back-office support, and certain mortgage roles in wealth management. According to the article, shifting business needs, changing locations, and employee performance all played a part.
The move comes right after what the Journal called a banner 2025—record annual revenue in investment banking and trading, plus strong results in the wealth unit. It’s a reminder: banks don’t have to single out a desk or region when they decide to make cuts.
Morgan Stanley runs three core divisions: its deals and markets operations, wealth management for high-net-worth clients, and its asset-management unit. Trimming staff across all three points to broader belt-tightening at the bank, not simply a response to trouble in a single line.
Cutting jobs isn’t new for Morgan Stanley. Back in March 2025, the bank was set to eliminate roughly 2,000 roles, Reuters reported, targeting a leaner operation and tighter reins on expenses.
Competitors are increasingly discussing headcount and tech-focused productivity moves. In December, Wells Fargo CEO Charlie Scharf told investors the bank will likely shrink its workforce by 2026, pointing to artificial intelligence as a factor that “is going to potentially do” something “to headcount.” Reuters
Goldman Sachs CEO David Solomon said this week that AI’s effect on jobs is “complicated.” He doesn’t expect a big change in headcount — “it’ll just be more productive,” he said. Reuters
Still, broad layoffs across key divisions come with hazards. Teams may get rattled, clients too—particularly on the wealth management side. And if trading or dealmaking picks up speed again, the bank could easily find itself understaffed.
Morgan Stanley hasn’t disclosed further details about the latest round of cuts, sticking to what the Journal outlined. So far, roughly 2,500 positions are on the chopping block, most of them surfacing in reports this Wednesday.
