Morgan Stanley is slashing about 3% of its global across its key divisions despite record revenue.
Sources familiar with the matter have told The Post that the investment band would laid off roughly 2,500 jobs.
The cuts hit the Ted Pick-led lender’s investment banking, trading, and wealth management units, the people close to the situation said.
Layoffs began last week, and both Morgan Stanley’s US and international offices will be impacted, they added.
News of the job losses was first the Wall Street Journal reported earlier on Wednesday.
An insider told Reuters that the job cuts were across the bank's three major divisions, investment banking and trading, wealth management and investment management, but do not affect its financial advisors.
Morgan Stanley reported a banner year in 2025, with annual revenue hitting a record at the investment banking giant.
It also beat Wall Street estimates for fourth-quarter profit in January, fueled by a 47% jump in investment banking revenue as dealmaking surged and debt underwriting fees nearly doubled.
Banking executives had struck an optimistic tone for 2026 on the back of healthy pipelines for mergers and acquisitions as well as initial public offerings.
The cuts are based on strategy and individual performance, and the bank intends to add headcount in other areas, the source added.
Despite the strong results, Morgan Stanley has trimmed staff multiple times in recent years. This round includes private bankers and back-office roles in wealth management, some handling client mortgages.
There have been massive layoffs across U.S. companies since the start of this year, as they streamline operations amid rising adoption of artificial intelligence tools.
Late last month, Jack Dorsey-led payments firm Block, opens new tab said it had cut over 4,000 jobs, nearly half its workforce, as part of an overhaul to embed AI across its operations.
