Morgan Stanley is preparing to cut roughly 2,500 jobs, representing about 3% of its global workforce, reported the Wall Street Journal citing sources. 

The layoffs will impact the investment banking and trading, wealth management, and investment management divisions. 

Sources indicate that the redundancies are related to changes in business focus, location requirements, and job performance. Employees in both the US and international offices will be affected, the news publication added.  

The reductions follow a strong year for the bank in 2025, when it reported all-time high annual revenue in its investment banking and trading division as well as its wealth management business, the report noted.  

Morgan Stanley employs approximately 83,000 people. 

Most of the affected staff were informed on Wednesday, though some had already received notice last week, sources said.  

The bank has undertaken several rounds of staff reductions in recent years. 

In the latest round of cuts within the wealth management unit, roles impacted include private bankers and support staff.  

Some positions related to managing mortgages for wealth-management clients are also being eliminated. 

According to Reuters, the workforce changes are part of broader strategic adjustments and performance considerations.  

The bank plans to recruit for roles in other areas, noted the news agency. 

This move comes amid a wider trend among US companies, many of which have announced layoffs since the start of the year as they seek efficiencies and adopt AI tools.  

Last month, Block, co-founded by Jack Dorsey, cut 40% of its jobs as part of efforts to increase AI integration. 

In January, Reuters reported that BlackRock will trim its global headcount by approximately 1%, amounting to around 250 positions.