Morgan Stanley to layoff 2,000 employees

Morgan Stanley has started it preparations to lay off nearly 2,000 employees later this month. It aimed at improving operational efficiency, according to a source familiar with the matter, reported Reuters. They said job cuts will affect 2% to 3% of the company's workforce, but financial advisers will not be impacted.

Morgan Stanley had over 80,000 employees worldwide by the end of 2024. The layoffs are not linked to current market conditions, the source mentioned.

In fact, several renowned banks have been reducing their workforce recently as they brace for economic uncertainty following President Donald Trump’s newly announced trade tariffs.

 Bank of America recently cut 150 junior banker positions in its investment banking division.

It must be noted that bankers were expecting a strong rebound in capital markets after Trump's re-election. However, uncertainty over trade policies has made businesses hesitant about big financial moves.

Also, Goldman Sachs plans to reduce its workforce by 3% to 5% as part of its annual review process.

Meantime, the new stock offerings and mergers are currently on hold or facing stricter conditions due to policy uncertainties. However, the bank continues to expand its senior investment banking team. Daniel Simkowitz, Morgan Stanley Co-President mentioned.