Profits Up Again, This Famous Bank Cuts 2,500 Jobs
The US-based investment banking giant Morgan Stanley is reportedly undertaking large-scale layoffs affecting around 2,500 employees across its businesses. The cutbacks come as the company’s performance is at record highs. Reuters reported on Thursday, 5 March 2026. The mass layoffs mainly target staff in three core banking divisions: investment banking and trading, wealth management, and investment management, with financial advisory roles said to be spared. The layoffs are being driven by strategy and individual performance, and the bank intends to increase headcount in other areas. Morgan Stanley employed around 82,992 people worldwide as of 31 December 2025. Thus, the layoff wave affects around 3% of the total global banking workforce. Interestingly, the efficiency move follows Morgan Stanley reporting very strong results in 2025, with record annual revenue. In January, Morgan Stanley also reported fourth-quarter earnings that beat Wall Street expectations, driven by a 47% jump in investment banking revenue amid higher corporate deal activity and nearly doubling of debt underwriting fees. Executives had previously expressed optimism about 2026, supported by a pipeline of mergers and acquisitions (M&A) and initial public offerings (IPOs) that were still strong. On the other hand, market volatility triggered by AI disruption concerns in legacy technology and geopolitical tensions has increased trading activity on the desk, as clients reposition portfolios to guard against risks. It is perhaps not surprising that a renowned investment bank would pursue mass layoffs when performance is strong. Beyond Morgan Stanley, similar layoff waves have hit various US firms since the start of the year as companies streamline operations amid rising adoption of artificial intelligence across their business lines. At the end of last month, Jack Dorsey-led payments company Block cut more than 4,000 jobs as part of a restructuring to integrate AI across its operations, a figure representing almost 50% of the workforce.