Morgan Stanley is preparing to cut approximately 2 000 employees later this month, representing its first significant staff reduction under new CEO Ted Pick. The layoffs will affect most divisions except the firm’s roughly 15 000 financial advisers. With around 80 000 employees globally, the cuts are aimed at controlling costs amid persistently low staff turnover. The decision predates the recent market volatility.

This action follows a broader trend across Wall Street, where major banks, including Goldman Sachs, have accelerated their staff reductions in response to economic uncertainty. Goldman Sachs plans to reduce its workforce by 3% to 5% this spring.

Despite initial expectations of increased deal-making after Donald Trump’s election victory, investment activity has remained subdued due to ongoing concerns over tariffs and policy changes. Morgan Stanley’s Co-President Dan Simkowitz noted that mergers, acquisitions, and equity issuances are currently “on pause”, though the firm is still hiring senior investment bankers in anticipation of a capital-markets rebound.

The upcoming job cuts at Morgan Stanley stem from various factors, including individual performance, changes in workforce location strategy, and the growing influence of artificial intelligence and automation. The latter is expected to contribute to more job reductions in future.

Since the start of 2025, Morgan Stanley shares have dropped 6%, the weakest performance among major US banks. Ted Pick, who succeeded James Gorman as CEO in early 2024 and became chairman in 2025, has maintained his predecessor’s strategic direction amid these challenges.