Morgan Stanley is set to lay off approximately 2,000 employees later this month, according to a Reuters report.
This decision represents a reduction of about 2% to 3% of the company’s workforce, excluding financial advisers, and is aimed at enhancing operational efficiency. The bank had over 80,000 employees globally by the end of 2024.
The layoffs are not attributed to current market conditions, as confirmed by a source close to the matter. Daniel Simkowitz, Co-President of Morgan Stanley, stated at a conference that new equity issues and mergers and acquisitions are “certainly on pause,” owing to policy uncertainties.
However, Simkowitz noted that the bank continues to add senior-level positions within its investment banking division.
This move comes as other Wall Street banks also make staff reductions in response to an uncertain economic climate. Recently, Goldman Sachs announced plans to reduce staffing by 3% to 5%, while Bank of America cut 150 junior banker roles.
Additionally, Morgan Stanley’s job cuts are partially tied to performance and changes in the locations where some employees are based.
Despite expectations for a strong rebound in capital markets after President Trump’s election, the anticipated surge in activity has not materialized, especially as clients struggle with the president’s fluctuating tariff policies.
