Following Goldman Sachs, Morgan Stanley to Cut 2,000 Employees as Well

Morgan Stanley to Cut 2,000 Jobs
AI Drives Layoffs, Unrelated to Recent Stock Market Trends

Following major U.S. investment bank Goldman Sachs, Morgan Stanley is also significantly reducing its workforce.

Photo by Bloomberg News

Bloomberg reported on the 19th (local time) that Morgan Stanley plans to lay off about 2,000 employees by the end of this month through its first large-scale workforce reduction since CEO Ted Pick took office early last year.

According to sources, Morgan Stanley will implement cuts across the company, excluding approximately 15,000 investment advisory personnel. Morgan Stanley has a total workforce of about 80,000 employees.

This move is planned to reduce costs regardless of recent stock market movements, with some reductions reportedly due to artificial intelligence (AI) and automation.

Bloomberg reported that Morgan Stanley’s stock price has slipped 6% this year, marking the poorest performance among major U.S. banks.

Daniel Simkowitz, co-president of Morgan Stanley, said at a conference on the 18th that merger and acquisition announcements and new stock issuances are "definitely on hold," but nonetheless, "they are still expecting a recovery in the capital markets and are hiring senior-level personnel."

A Morgan Stanley spokesperson based in New York declined to comment.

Earlier, Morgan Stanley’s "rival" Goldman Sachs also announced plans to cut 3-5% of its total workforce in the first half of the year. Reuters reported that Goldman Sachs had a total of 46,500 employees as of the end of last year, and this reduction is expected to affect more than 1,395 employees.