Morgan Stanley reportedly cuts 2,500 jobs across global operations

US investment bank Morgan Stanley has reportedly laid off about 2,500 employees worldwide, representing roughly 3 per cent of its global workforce, according to media reports.

The job reductions, which began in early March, are said to be part of a broader effort to realign the bank’s operations with evolving business priorities and a revised global location strategy, rather than being directly related to artificial intelligence-driven restructuring. The The Wall Street Journal, citing sources familiar with the matter, reported that performance reviews of employees also played a role in the decision.

The layoffs span the firm’s three main divisions — institutional securities, wealth management and investment management — and affect a range of positions, including front-office, revenue-generating and back-office roles. However, financial advisers are not believed to be impacted.

The bank had not issued an official response to the report at the time of publication.

The latest workforce reduction follows a similar move last year when Morgan Stanley cut around 2,000 jobs.

The development comes even as the bank reported strong financial performance. It posted record full-year revenue of $70.6 billion in 2025, with revenue in the final quarter rising by 47 per cent. As of 31 December 2025, Morgan Stanley employed 82,992 people across more than 40 countries.

In a recent analysis, the bank suggested that the long-term impact of artificial intelligence on employment may be less disruptive than widely feared. While certain tasks could become automated, it said most workers would likely transition into new roles rather than being permanently displaced, with many future jobs yet to be created.

The broader technology and financial sectors, however, continue to witness workforce restructuring amid rapid advances in automation and AI. Jack Dorsey, co-founder of Block, recently announced plans to nearly halve the company’s workforce, reducing staff from more than 10,000 to just under 6,000 as it adapts to AI-driven changes.

Other major firms are also adjusting their staffing levels. Amazon has reportedly reduced jobs in its robotics division following a large round of layoffs earlier this year, while Oracle is said to be considering cutting between 20,000 and 30,000 roles as it expands data-centre capacity to support artificial intelligence operations.

Industry leaders have increasingly warned that many white-collar roles dependent on computer-based work could face automation over the next year or so, potentially reshaping employment patterns across sectors.

With IANS inputs