Morgan Stanley to lay off about 3% of its workforce as job cuts continue in financial sector

Group 1 - Morgan Stanley is laying off approximately 2,500 employees, which represents about 3% of its workforce, across its entire investment banking division [1] - The company increased its workforce significantly during the pandemic, growing from 60,000 employees in 2019 to 82,000 by the end of 2022, and reaching 83,000 by the end of 2025 [2] - The layoffs at Morgan Stanley will not affect its financial advisors but will target support function employees within its wealth management division [4] Group 2 - Other financial firms, such as Citigroup and Blackrock, have also reduced their headcounts, with Block announcing a 40% workforce reduction, citing productivity gains from AI [3] - The financial sector has seen tens of thousands of job cuts in the early months of the year, indicating a broader trend of layoffs across the industry [2]