Morgan Stanley Cuts 2,500 Jobs Amid AI Shift

Global investment bank Morgan Stanley is set to cut around 2,500 jobs, representing about 3% of its global workforce, as the firm realigns its operations with changing business priorities and technology-driven transformation.

The layoffs will impact employees across the bank’s three core divisions—investment banking and trading, wealth management, and investment management—according to reports. The move is part of a broader restructuring effort aimed at improving efficiency and adapting to evolving market conditions.

The bank has described the layoffs as a strategic step linked to new business priorities and location strategies, as financial institutions increasingly streamline operations and shift resources toward high-growth areas.

Earlier this year, Morgan Stanley released research forecasting that up to 200,000 banking jobs in Europe could disappear by 2030. The report suggested that automation, artificial intelligence, and digitalisation could deliver efficiency gains of nearly 30%, particularly in central services such as back-office operations, risk management, compliance, and mid-office functions.

The move reflects a wider transformation across the global financial industry, where banks are accelerating investments in AI, automation, and digital platforms to reduce operational costs and improve productivity.

Morgan Stanley is not alone in undertaking workforce reductions. Financial services firm Block recently cut 4,000 jobs as it redirected resources toward artificial intelligence initiatives. Meanwhile, French banking group Société Générale announced 1,500 layoffs as part of its cost-reduction strategy.

Similarly, Dutch lender ABN AMRO eliminated around 5,200 positions in late 2025 as it sought to boost profitability and streamline operations.

These developments highlight a broader trend in global banking, where AI adoption and digital transformation are reshaping workforce structures, prompting institutions to reduce traditional roles while investing heavily in technology-driven capabilities.