Morgan Stanley Layoffs: Wall Street Giant Mulls 2,000 Job Cuts, Joining Rivals

Wall Street giant Morgan Stanley is planning to cut about 2,000 jobs later this month, joining rivals like Goldman Sachs, JPMorgan, and Bank of America. Like others, Morgan Stanley also saw billions in profit in the fourth quarter of 2024. 

The job cuts were reported by Bloomberg, citing sources. The report claimed that the banking giant plans to reduce its workforce of over 80,000 by 2-3%. However, these job cuts will not include the company’s financial advisers. 

The report also noted that the layoffs are not related to the current market slump on Wall Street but will instead be tied to employee performance. Some of the cuts will also result from changes in the locations where the bank bases some of its workers. 

Notably, Morgan Stanley is one of Wall Street’s banks where attrition is very low. 

Wall Street Layoffs

Before Morgan Stanley, it was reported that Goldman Sachs plans to cut its headcount by 3-5% based on its annual performance review. Bank of America has reportedly eliminated 150 junior banker roles in its investment banking arm. 

JPMorgan also kicked off one of the many phased layoffs it has planned for this year in February. The bank reportedly fired fewer than 1,000 employees last month. 

These cuts come despite strong quarterly earnings reported by Wall Street for the October-December quarter of 2024. 

Morgan Stanley saw its quarterly profit more than double to $3.71 billion in Q4 2024, compared to the same period a year earlier. 

According to a CNBC report, JPMorgan Chase, Goldman Sachs, and Citigroup also exceeded expectations during this period, driven by better-than-expected revenue from trading and investment banking. 

However, they are now facing policy uncertainty after US President Donald Trump took office. According to Reuters, bankers had expected a robust rebound in capital markets following Trump's election, but that optimism has yet to translate into activity, as clients grapple with the president’s shifting tariff threats. 

Additionally, artificial intelligence and automation within banks have also been cited as contributing factors to recent layoffs on Wall Street.