Morgan Stanley to cut 3% of worldwide workforce in core business lines, including banking, trading, wealth

Core Viewpoint - Morgan Stanley is reducing its global workforce by 3%, impacting approximately 2,500 positions out of 83,000 reported at the end of 2025 [1][2]. Group 1: Workforce Reduction Details - The layoffs will affect the firm's three primary business units: Institutional Securities, Wealth Management, and Investment Management [2]. - The rationale for the workforce reduction includes shifting business priorities, a revised global location strategy, and individual performance reviews [2]. - The cuts will impact both front-office revenue-generating roles and back-office support positions [2]. Group 2: Specifics on Wealth Management Division - The wealth management division will see cuts primarily in "home office" corporate roles, while financial advisors in field offices will not be affected [3]. Group 3: Context and Financial Performance - This round of layoffs follows a previous reduction of approximately 2,000 roles last spring [4]. - Despite the layoffs, Morgan Stanley reported record full-year 2025 revenues of $70.6 billion, with a 47% surge in investment banking revenues in the final quarter [4]. - The financial industry is preparing for an anticipated increase in corporate dealmaking, with some rivals expanding headcount, while Morgan Stanley plans for long-term growth by adding resources in certain sectors [5].