New Delhi: Morgan Stanley has reportedly laid off around 2,500 employees, representing roughly 3 per cent of its global workforce, starting in early March, according to media reports.

The layoffs, which span the bank’s institutional securities, wealth management, and investment management divisions, are said to affect front-office, revenue-generating, and back-office roles, though financial advisors remain unaffected.

Reason for job cuts

Sources cited by the Wall Street Journal indicated that the job reductions are not linked to artificial intelligence (AI) reforms but are due to shifting business priorities, a revised global location strategy, and performance reviews.

The move follows a similar round of layoffs last spring, when the bank cut 2,000 jobs.

Financial context

The layoffs come despite Morgan Stanley reporting record full-year revenues of $70.6 billion in 2025, including a 47 per cent surge in fourth-quarter revenue. As of December 31, 2025, the bank employs 82,992 staff across more than 40 countries.

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AI and the future of work

In a recent report, Morgan Stanley suggested that the long-term impact of AI on employment may be less severe than widely feared. While certain roles may be automated, most employees are expected to transition into new job types, including roles that do not yet exist. The bank emphasised that AI will change the nature of work rather than eliminate jobs entirely.

The layoffs at Morgan Stanley occur alongside broader tech-sector reductions. For instance:

  • Twitter co-founder Jack Dorsey’s Block will cut nearly half of its workforce due to AI-related changes, reducing staff from over 10,000 to under 6,000.
  • Amazon has cut at least 100 white-collar roles in its robotics division following a previous reduction of around 16,000 jobs in January.
  • Oracle plans to reduce its workforce by 20,000–30,000 to expand its AI data-centre capacity.

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The trend highlights how financial institutions and tech companies are adapting to evolving business priorities and AI-driven transformations while managing workforce efficiency.

IANS