Morgan Stanley to axe 2,500 staff across divisions

ChainWatcher · 2026-03-07T15:14:48+00:00

Major layoffs are occurring across investment banking, wealth management, and investment management sectors, driven by new business strategies and AI efficiencies. Predictions indicate significant job cuts in European banks by 2030, impacting central services roles.

ChainWatcher

2026-03-07 15:14:48

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Staff will be laid off across the company’s three main branches: investment banking and trading, wealth management, and investment management, The Wall Street Journal reported on Thursday.

The announcement from the bank branded the layoffs as a step towards new business priorities and location strategies.

In January 2026, a study from Morgan Stanley predicted that 200,000 European banking jobs will be cut by 2030, and that the layoffs will focus on central services divisions such as back-office, mid-office, risk management, and compliance roles. Their research stated that banks could boost efficiency gains by up to 30% from AI and digitalisation.

Morgan Stanley is not the only bank to enforce major job cuts to make room for new priorities, earlier this year Block laid off 4,000 employees to prioritise AI development, and Societe Generale cut 1,500 staff in cost-cutting efforts. In November 2025, ABN AMRO terminated 5,200 employees in a move to boost profitability.

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