Morgan Stanley is cutting 2,500 jobs, roughly 3% of its workforce, despite posting record revenue across all divisions in 2025. This is the clearest example of profitable companies using favorable market conditions to optimize headcount.
The cuts span all divisions and are framed as a combination of performance management and location strategy. In practice, this means some roles are being eliminated entirely while others are being moved to lower-cost offices. The banking sector has collectively cut over 40,000 jobs in 2026, and Morgan Stanley's cuts contribute to a structural redesign of how investment banks staff their operations.