Morgan Stanley to axe 2,500 jobs: Wall Street Journal

The news: Investment bank Morgan Stanley intends to lay off 3% of its workforce, about 2,500 people, according to the Wall Street Journal citing people familiar with the matter.

The context: The cuts will affect employees across Morgan Stanely’s three major divisions of investment banking and trading, wealth management and investment management. It will affect employees in the US and globally.

The Wall Street Journal reports that the restructure is related to shifting business and location priorities as well as individual performance. Many cuts took place on Wednesday but have been ongoing since last week.

Cuts at the wealth management division include private bankers and back-office roles.

In January, Morgan Stanley reported an 18% increase in profit for the fourth quarter of 2025 as its wealth management business attracted net new assets of USD122 billion ($172.37 million) during the period.