Morgan Stanley is preparing to reduce its 80,000-person workforce by 2,000 employees later this month, marking the bank’s first significant round of layoffs since CEO Ted Pick took over in January 2024.
The workforce reduction will affect divisions across Morgan Stanley, except for its 15,000 financial advisers, per Bloomberg. The cuts are meant to keep costs down as executives face low attrition, or a low rate of employees leaving an organization through resignations, terminations, or retirements.
Some employees impacted by the layoffs will be let go due to performance issues, while others will be cut because AI and automation have replaced their roles within the bank. A source told Bloomberg that the bank expects to make more job reductions due to AI in the coming years.
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