Morgan Stanley to Cut 2,000 Jobs in Effort to Manage Costs

Morgan Stanley is set to reduce its workforce by approximately 2,000 employees later this month, marking the first significant staff cut under Chief Executive Officer Ted Pick.

The layoffs are expected to affect various departments within the firm, excluding its nearly 15,000 financial advisers, as per sources familiar with the situation. The decision to downsize was initiated prior to the recent upheaval in the markets, these sources noted.

This initiative aims to manage expenses as executives face challenges with low turnover among employees. A spokesperson from the New York-based bank refrained from providing comments on the matter.

Morgan Stanley’s workforce reductions contribute to a broader trend of staff cuts across Wall Street as companies respond to an unpredictable economic environment. In a similar move, Goldman Sachs recently accelerated its annual layoffs, planning to cut 3% to 5% of its workforce this spring.

In the aftermath of Donald Trump’s presidential election victory in November, financial professionals anticipated a boost in business activity, but this has not yet occurred as clients grapple with tariffs and other regulatory changes. Earlier this week, Treasury Secretary Scott Bessent expressed that he is not concerned about the recent market decline that has wiped trillions from equity indices, remarking that “corrections are healthy, they are normal.”

Morgan Stanley Co-President Dan Simkowitz stated at a conference on Tuesday that merger and acquisition activity and new equity issuances are “definitely on hold.” Nevertheless, the firm is “bringing in real talent” at senior investment banking positions in preparation for a recovery in capital markets, he indicated.

Some of the impending job cuts are linked to employee performance, while others stem from shifts in the firm’s operational structure. A small number are related to the effects of artificial intelligence and automation within the organization — a trend expected to increasingly contribute to job reductions in the coming years, according to one insider.

Morgan Stanley’s shares have fallen by 6% this year, representing the poorest performance among major U.S. banks. Pick assumed the CEO position at the beginning of 2024 and took on the role of chairman at the start of this year. He has largely adhered to the strategy established by his predecessor, James Gorman, who led the firm for over a decade.

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