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Morgan Stanley Cuts 2,500 Jobs Amid Record Revenues, AI Job Shift Looms

US investment bank Morgan Stanley has reportedly laid off approximately 2,500 employees, representing about 3% of its global workforce. The cuts, affecting multiple divisions, are attributed to shifting business priorities and performance reviews, not directly to AI. This move comes even as the bank announced record full-year revenues of $70.6 billion for 2025. Meanwhile, the bank's own analysis suggests AI will transform work rather than cause mass permanent job loss, a view contrasted by significant tech sector layoffs linked to AI efficiency drives.

Key Points: Morgan Stanley Lays Off 2,500 Employees, 3% of Workforce

  • 2,500 jobs cut, 3% of global workforce
  • Cuts span wealth & investment management
  • Follows 2,000 layoffs last spring
  • Bank posted record $70.6B revenue
2 min read

Morgan Stanley lays off 2,500 employees across divisions: Report

Morgan Stanley cuts 2,500 jobs across divisions despite record revenues. Report says AI's long-term job impact may be less severe than feared.

"AI will change the nature of work rather than eliminate it entirely. - Morgan Stanley report"

New Delhi, March 5

US-based investment banker Morgan Stanley has reportedly laid off about 2,500 employees, or roughly 3 per cent of its global workforce, starting in early March, reports have said.

The job cuts are not linked to artificial intelligence-related reforms but stem from shifting business priorities, a revised global location strategy and performance reviews of employees, according to a Wall Street Journal report, citing sources.

The reported layoffs span across the bank's three major divisions such as institutional securities, wealth management and investment management affecting front‑office roles, revenue-generating roles and back‑office positions, though financial advisors are not impacted.

Morgan Stanley was yet to comment on the report.

The move follows a similar round of job cuts last spring when the bank laid off 2,000 employees.

The layoffs coincide with Morgan Stanley posting a record full‑year 2025 revenues of $70.6 billion, and a 47 per cent surge in revenues for the final quarter. The bank employs 82,992 people across over 40 countries as of December 31, 2025.

Morgan Stanley, in a recent report, had suggested that long-term impact of AI on jobs may be less severe than many expect.

According to the report, while some roles will be automated, most workers are unlikely to be permanently left behind. Instead, many are expected to shift into new types of jobs, including roles that do not yet exist. The bank said artificial intelligence will change the nature of work rather than eliminate it entirely.

Twitter co-founder Jack Dorsey recently announced that Block, the payments company he founded, will cut its workforce by nearly half due to AI-led changes. The company will cut its workforce from over 10,000 people to just under 6,000.

Several tech industry leaders have said that most white‑collar roles that rely on computers could be automated within the next 12 to 18 months.

According to reports, Amazon has laid off staff across its robotics unit, with at least ​100 white-collar jobs affected. This comes after a January cut of about 16,000 jobs at the company.

US tech giant Oracle plans to cut 20,000 to 30,000 jobs to expand its AI data‑centre capacity.

- IANS

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Reader Comments

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Priya S
The part about AI changing the nature of work is key. We need to upskill, not just panic. In India, we should focus on building skills that AI can't easily replicate - creativity, complex problem-solving, and emotional intelligence. 🧠
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Aman W
"Shifting business priorities and revised global location strategy" – corporate speak for cost-cutting and moving jobs to cheaper locations. This directly impacts Indian professionals in global roles. Time to strengthen our domestic financial sector.
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Sarah B
Respectfully, the article says these cuts aren't AI-related, but then spends paragraphs talking about AI job losses. It's a bit confusing. The core issue seems to be corporate restructuring for shareholders, not technology.
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Vikram M
This global uncertainty makes a strong case for 'Vocal for Local' in the professional sphere too. Indian companies and startups should seize this moment to attract top talent that might be looking for stable opportunities. Jai Hind! 🇮🇳
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Karthik V
My cousin works in wealth management in Mumbai for a global firm. The anxiety is real. Even if your division isn't cut today, the constant "performance reviews" create a toxic, fearful environment. Mental health matters too.

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