New Delhi, March 5: Morgan Stanley, a leading investment banking firm in the United States, has laid off around 2,500 employees globally. This figure represents nearly 3% of the company’s total workforce. Reports indicate that these layoffs began at the start of March.
According to a report from the Wall Street Journal, the job cuts are not a result of any restructuring related to artificial intelligence (AI). Instead, they are attributed to the company’s shifting business priorities, a new global location strategy, and a review of employee performance.
The layoffs have affected three major divisions of the bank: Institutional Securities, Wealth Management, and Investment Management. Positions in front-office roles, revenue-related jobs, and back-office functions have been impacted, although financial advisors have been excluded from this decision.
Currently, Morgan Stanley has not officially commented on this report. Last spring, the company had already laid off about 2,000 employees.
Interestingly, these layoffs come at a time when the firm reported a record annual income of $70.6 billion for 2025. The last quarter of the year saw a significant 47% increase in the company’s income. As of December 31, 2025, Morgan Stanley employed a total of 82,992 individuals across more than 40 countries.
In a recent report, Morgan Stanley stated that the long-term impact of AI on jobs may not be as severe as many believe. The company noted that while some jobs will indeed be automated, most employees are unlikely to become entirely unemployed. Many may transition into new types of roles, some of which do not yet exist. The bank believes that AI will change how work is done but will not completely eliminate jobs.
Meanwhile, Block, a payment company founded by Jack Dorsey, has also announced plans to reduce its workforce by nearly half due to AI-related changes. The company aims to cut its employee count from 10,000 to about 6,000.
Experts in the tech industry suggest that most computer-based white-collar jobs may move towards automation within the next 12 to 18 months.
Reports indicate that Amazon has also laid off employees in its robotics division, affecting at least 100 white-collar positions. Earlier in January, the company had cut approximately 16,000 jobs.
Additionally, U.S. tech company Oracle is planning to lay off between 20,000 to 30,000 employees to expand its AI data center capacity.
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