2,000 Employees to Exit Morgan Stanley in First Major Layoff Under New CEO

Morgan Stanley is set to cut 2,000 jobs this month in its first major workforce reduction under Chief Executive Officer Ted Pick.

The decision is part of a broader effort to manage costs as the firm faces minimal employee attrition and shifting economic conditions.

The cuts will affect various divisions but will not include the bank’s 15,000 financial advisers.

The layoffs were planned before recent market turbulence and reflect a strategic move to streamline operations. With a workforce of 80,000 the firm is adjusting to a challenging financial environment where deal-making and capital markets activity remain weak.

Wall Street Faces a Wave of Job Cuts

Morgan Stanley’s decision follows similar moves by other major financial institutions as Wall Street responds to economic uncertainty. Goldman Sachs recently accelerated its annual staff reductions planning to eliminate 3% to 5% of its workforce this spring.

Despite expectations that Donald Trump’s election victory would boost financial activity investment banking has remained sluggish as businesses grapple with tariffs policy shifts and global economic challenges.

Treasury Secretary Scott Bessent dismissed concerns over market volatility stating that stock market corrections are a normal part of financial cycles.

Morgan Stanley Co-President Dan Simkowitz acknowledged that mergers acquisitions and new equity issuances are currently on hold but noted that the firm is hiring senior investment bankers in anticipation of a market recovery.

Cost Reduction and Workforce Restructuring

The job cuts are driven by a combination of performance-based evaluations strategic workforce realignment and the increasing impact of artificial intelligence and automation. Some roles are being eliminated due to changes in the firm’s geographic workforce distribution while others are affected by technological efficiencies reshaping the industry.

Morgan Stanley’s stock has declined 6% this year making it the worst-performing major US bank. Pick who took over as CEO in early 2024 has largely continued the strategy set by his predecessor James Gorman who led the firm for over a decade.

Looking Ahead

Despite the workforce reductions Morgan Stanley remains focused on long-term growth. The firm continues to invest in technology and senior banking talent positioning itself for a potential market rebound.

For now the financial industry remains under pressure. As Wall Street firms navigate an evolving economic landscape analysts expect further cost-cutting measures and strategic shifts to shape the months ahead.