Morgan Stanley Cuts 2,500 Jobs Despite Record 2025 Revenue

Morgan Stanley has trimmed roughly 3% of its global workforce, affecting around 2,500 employees across the organisation, according to a Reuters report.  

The layoffs span several of the bank’s major operating segments, including investment banking and trading, wealth management and investment management. However, financial advisors have not been impacted by the workforce reduction. 

Workforce Restructuring Across Business Units 

As per the report, the cuts are part of internal strategic adjustments and performance reviews, Morgan Stanley had a global headcount of 82,992 employees as of December 31.  

While certain teams are being reduced, the bank is also expected to continue hiring in selected areas where business activity remains strong. 

Layoffs Come Despite Strong Results 

The staffing changes come even as Morgan Stanley posted a strong financial performance in 2025, reporting record annual revenue. 

The bank also surpassed market expectations for its fourth-quarter profit earlier this year, driven by a sharp rise in investment banking activity. Revenue from the segment climbed 47%, supported by increased dealmaking and higher debt underwriting fees. 

Executives at the bank have struck an optimistic tone for 2026, citing a solid pipeline of mergers and acquisitions and initial public offerings, while market volatility linked to geopolitical risks and technological shifts continues to support trading activity. 

Read More: Union Budget 2026: Morgan Stanley Highlights Reform Priorities Across Defence and Auto Sectors! 

Conclusion 

The move reflects a broader trend among global corporations adjusting workforce structures as artificial intelligence adoption accelerates and businesses seek greater operational efficiency. Several US companies have announced layoffs this year while reshaping operations around emerging technologies. 

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