US-based investment bank Morgan Stanley has laid off approximately 2,500 employees, about 3% of its global workforce, starting in early March. The job cuts are not related to artificial intelligence reforms but are due to changing business priorities, a revised global location strategy, and employee performance reviews, as per a Wall Street Journal report. The layoffs impact the bank’s major divisions, including institutional securities, wealth management, and investment management, affecting various roles except financial advisors.
This round of job cuts follows a previous one where the bank laid off 2,000 employees. The layoffs come as Morgan Stanley reported record full-year revenues of $70.6 billion in 2025, with a 47% increase in revenues for the final quarter. As of December 31, 2025, the bank employs 82,992 people across more than 40 countries. Morgan Stanley had previously suggested that the long-term impact of AI on jobs might not be as severe as anticipated, with most workers expected to transition into new job types rather than being permanently displaced.
Twitter co-founder Jack Dorsey announced that his payments company, Block, will reduce its workforce by almost half due to AI-led changes, decreasing from over 10,000 employees to just under 6,000. Tech industry leaders predict that many white-collar roles relying on computers could be automated within the next 12 to 18 months. Amazon has reportedly laid off staff in its robotics unit, affecting at least 100 white-collar jobs, following a previous cut of about 16,000 jobs in January. Additionally, US tech giant Oracle plans to cut 20,000 to 30,000 jobs to enhance its AI data-center capacity.
