According to a Wall Street Journal report, sources have been quoted as saying that the job cuts are not related to improvements related to artificial intelligence, but are due to changing business priorities, a changed global location strategy and employee performance reviews.
The reported layoffs are spread across three major divisions of the bank namely Institutional Securities, Wealth Management and Investment Management, affecting front-office roles, revenue-generating roles and back-office positions, although financial advisors have not been impacted.
Morgan Stanley has not yet commented on the report.
The move follows similar job cuts last spring, when the bank laid off 2,000 employees.
The layoffs come as Morgan Stanley reports record revenue of $70.6 billion for full-year 2025 and a 47% increase in revenue in the last quarter. As of December 31, 2025, the bank employs 82,992 people in more than 40 countries.
Morgan Stanley recently reported in a report that the long-term impact of AI on jobs may not be as severe as many are expecting.
According to the report, some roles will be automated, but most workers are not expected to be left behind forever. Instead, many people are expected to shift to new types of jobs, including roles that don’t yet exist. The bank said that artificial intelligence will change the nature of work rather than eliminating it completely.
Twitter co-founder Jack Dorsey recently announced that Block, the payments company he started, will nearly halve its workforce due to changes driven by AI. The company will reduce its workforce from more than 10,000 people to just under 6,000.
Many tech industry leaders have said that most white-collar roles that rely on computers could be automated within the next 12 to 18 months.
According to reports, Amazon has laid off staff in its robotics unit, affecting at least 100 white-collar jobs. This comes after the company cut about 16,000 jobs in January.
US tech giant Oracle is planning to cut 20,000 to 30,000 jobs to increase its AI data-center capacity.
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