NEW YORK — Investment banking giant Morgan Stanley is eliminating approximately 2,500 positions as the financial industry continues widespread workforce reductions this year.
The job cuts represent about 3% of Morgan Stanley’s total staff and are happening throughout the investment banking operation, according to a source familiar with the situation who spoke anonymously since the company isn’t publicly discussing the reductions.
Similar to other financial firms, Morgan Stanley expanded rapidly during the coronavirus pandemic, growing from 60,000 workers in 2019 to 82,000 by the close of 2022. The firm employed 83,000 people at the end of 2025.
Already in the first two months of this year, tens of thousands of positions have been eliminated across various industries, with many affecting white-collar workers. Financial companies haven’t escaped this trend.
Both Citigroup and BlackRock have reportedly reduced their employee numbers, and last week financial technology firm Block — parent company of Cash App and Square — announced plans to eliminate 40% of its staff. Although Block founder Jack Dorsey attributed the cuts to artificial intelligence-driven productivity improvements, industry analysts pointed out that Block had essentially tripled its workforce between 2019 and 2025, expanding from 3,800 to 12,000 employees.
Morgan Stanley’s workforce reduction won’t affect the company’s financial advisors, though the firm is reducing support staff within its lucrative wealth management operations.
The Wall Street Journal initially broke the story about Morgan Stanley’s layoffs on Thursday.
