Morgan Stanley Cuts 3% Workforce After Record 2025 Revenues
Morgan Stanley is cutting 3% of its global workforce, or nearly 2,500 employees across investment banking, trading, wealth management and investment management, while financial advisors remain unaffected. The layoffs follow record 2025 revenues driven by a 47% jump in investment banking income and doubled debt underwriting fees.
1. Workforce Reduction Details
Morgan Stanley has initiated a global headcount reduction of approximately 3%, impacting nearly 2,500 roles across its investment banking, trading, wealth management and investment management divisions. The firm has confirmed that its financial advisor network will not be subject to these cuts.
2. Record 2025 Financial Results
The decision comes after Morgan Stanley posted record revenues in 2025, with investment banking income surging 47% year-over-year and fees from debt underwriting more than doubling. Trading and wealth management also contributed to the robust top-line performance.
3. Strategic Restructuring and Future Hiring
The layoffs are part of a broader strategic restructuring aimed at reallocating resources toward high-growth areas and optimizing global office locations. Despite the reductions, the bank plans to add headcount in targeted business lines where it sees stronger growth potential.