Morgan Stanley is cutting 3% of its workforce in core business lines, including banking, trading, and wealth

• Morgan Stanley is reducing 3% of its global workforce, Business Insider has confirmed.
• The firm is reducing roles in all three corporate business lines.
• Key drivers of the cut include performance reviews, location, and business priorities.

Morgan Stanley is reducing its global workforce by 3%, Business Insider has confirmed.

The reductions are expected to impact some 2,500 positions out of the roughly 83,000 the firm reported at the end of 2025. The Wall Street Journal first reported Morgan Stanley's cuts on Wednesday afternoon. A person familiar with the situation confirmed the cuts to Business Insider, saying they are expected to occur throughout the early part of March.

The exercise is global in nature, spanning the firm's three primary business units: Institutional Securities, Wealth Management, and Investment Management. The rationale for the reduction is a combination of shifting business priorities, a revised global location strategy, and individual performance reviews, the person added, saying that the action is set to affect both front-office, revenue-generating roles and back-office support positions.

Notably, the person said that, while the firm's respected wealth management division is affected, the cuts in that business line are focused on "home office" corporate roles. Financial advisors in field offices are not affected by this round of layoffs, the person continued.

The move follows a similar round of cuts last spring, when the bank reportedly trimmed approximately 2,000 roles. However, the current reductions come at a more optimistic moment for the firm's bottom line. In its most recent earnings report, Morgan Stanley posted record full-year 2025 revenues of $70.6 billion, with investment banking revenues surging 47% in the final quarter of the year.

The layoffs come as the broader financial industry prepares for an anticipated windfall in corporate dealmaking, and some rivals are touting how they're bulking up — not pulling back — on head count to meet the moment. Still, while Morgan Stanley is reducing head count in specific areas, the person with knowledge of the bank's thinking said, it's still planning for long-term growth and intends to add resources in some sectors while trimming in others.