Morgan Stanley plans to cut around 2,000 jobs this month, following similar moves by Goldman Sachs, JPMorgan, and Bank of America.
Despite posting strong profits in late 2024, Morgan Stanley the bank is reducing its workforce by 2-3%, according to Bloomberg. The cuts will not affect financial advisers.
The Wave of Job Cuts on Wall Street
Goldman Sachs is trimming its headcount by 3-5% as part of its annual review. Bank of America has eliminated 150 junior investment banking roles, while JPMorgan began a round of layoffs in February, cutting fewer than 1,000 jobs.
These layoffs come despite a profitable quarter for Wall Street. Morgan Stanley’s Q4 profit more than doubled to $3.71 billion compared to the previous year.
JPMorgan Chase, Goldman Sachs, and Citigroup also outperformed expectations, thanks to higher-than-expected revenue from trading and investment banking.
Uncertainty in the Market
While banks had hoped for a market rebound after Donald Trump’s return to the White House, shifting tariff policies have made clients hesitant.
Additionally, automation and artificial intelligence are reducing the need for certain roles, adding to the job cuts.
Bloomberg noted that the layoffs are tied to performance reviews and shifts in office locations rather than current market conditions.
The wave of layoffs isn’t just hitting Wall Street—tech companies are cutting jobs too. According to Layoffs.fyi, 87 tech companies have already laid off 23,054 employees in 2025.
Despite strong earnings in many sectors, corporations continue to trim their workforces, prioritizing efficiency and profit over job stability.
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