Morgan Stanley to Cut 3% of Global Workforce in Core Business Lines

Morgan Stanley, a leading global financial services firm, has announced plans to reduce its worldwide workforce by 3% across its core business lines, including banking, trading, and wealth management. This move is expected to impact approximately 2,500 positions out of the company’s total workforce of around 83,000.

The layoffs, which were first reported by The Wall Street Journal, are set to occur in the early part of March and will affect the firm’s three primary business units: Institutional Securities, Wealth Management, and Investment Management. The reductions are driven by shifting business priorities, a revised global location strategy, and individual performance reviews.

While the firm’s respected wealth management division will be affected, the cuts in this business line will focus on “home office” corporate roles, with financial advisors in field offices remaining unaffected. This move is not entirely unexpected, as the firm had implemented a similar round of cuts last spring, trimming around 2,000 roles.

Despite the current layoffs, Morgan Stanley’s financial performance has been strong, with record full-year 2025 revenues of $70.6 billion and a 47% surge in investment banking revenues in the final quarter of the year. The broader financial industry is also anticipating a windfall in corporate dealmaking, with some rivals bulking up their headcount to meet the demand.

However, Morgan Stanley’s approach is more nuanced, with the firm planning for long-term growth while trimming resources in specific areas. A person familiar with the situation stated that the company intends to add resources in some sectors while reducing headcount in others.

Key Takeaways:

• Morgan Stanley to cut 3% of global workforce, impacting around 2,500 positions
• Reductions will affect core business lines, including banking, trading, and wealth management
• Cuts driven by shifting business priorities, revised global location strategy, and individual performance reviews
• Wealth management division affected, but financial advisors in field offices remain unaffected
• Morgan Stanley planning for long-term growth, with resource additions in some sectors

This move by Morgan Stanley highlights the ongoing evolution of the financial industry, with firms adapting to changing market conditions and business priorities. As the industry prepares for an anticipated increase in corporate dealmaking, it will be interesting to see how Morgan Stanley’s strategy plays out and how its rivals respond.