MW Morgan Stanley is the latest bank to trim its workforce. Here's why.

By Bill Peters

Reports this month also said Goldman Sachs planned to push up the timing of its yearly workforce reductions

Morgan Stanley plans to cut between 2% and 3% of its 80,000 global employees late this month, a person familiar with the matter said on Tuesday.

The move, the person said, was related in part to the way the bank thinks about where employees are located, employee performance and overall resources, and was not specifically related to current market anxieties, as inflation and tariffs rattle consumers, businesses and investors.

The reduction of roughly 2,000 jobs at Morgan Stanley $(MS)$ will be company-wide, save for financial advisers, the person said, adding that along with the reductions, the bank would be making additions in some areas.

The news was first reported by Bloomberg, which said the cuts marked the first big effort to shrink the workforce under Chief Executive Ted Pick, as he tries to manage costs. Bloomberg reported that a fraction of those reductions was also due to the rise of automation and artificial intelligence.

Shares were unchanged after hours on Tuesday. The stock finished the day up 0.1%. As of Tuesday's close, shares are up 33.6% over the past 12 months.

The move comes after reports said Goldman Sachs $(GS)$ planned to push up the timing of its yearly workforce reductions, with plans to cut 3% to 5% of its staff.

During a conference on Tuesday, according to Bloomberg, Morgan Stanley Co-President Dan Simkowitz said that mergers and acquisitions and new stock issues were "certainly on pause," as President Donald Trump's plans bring more uncertainty over the economy.

However, he said the firm was adding higher-level positions in its investment banking unit to prepare for a rebound, according to Bloomberg.

"There are questions in terms of where will trade policy settle and what does that mean for companies and for markets," Chief Financial Officer Sharon Yeshaya said at that event. "But the good news about uncertainty and the good news about activity is that there are conversations, and there's generally a need overall for advice, specifically, when you think about our markets business."

-Bill Peters

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March 18, 2025 19:14 ET (23:14 GMT)

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