Morgan Stanley cuts 2,500 jobs , roughly 3% of workforce. The investment banking giant is trimming positions across its three major divisions—Institutional Securities, Wealth Management, and Investment Management—affecting both front-office and back-office roles globally. Notably, financial advisors remain unaffected. Unlike recent industry layoffs attributed to AI adoption, Morgan Stanley's cuts stem from shifting business priorities, revised location strategy, and performance reviews. The timing is significant given the bank's record 2025 performance with $70.6 billion in revenues and a 47% surge in investment banking revenues in Q4. Layoffs begin in early March, marking the second major workforce reduction in a year following similar cuts last spring.