Morgan Stanley, one of Wall Street’s biggest financial institutions, is planning to lay off around 2,000 employees later this month, according to a person familiar with the matter. The job cuts, accounting for roughly 2% to 3% of the company's global workforce, are part of an effort to improve operational efficiency.

The layoffs, which exclude financial advisers, come as the bank looks to optimize its workforce amid evolving business needs. A source, speaking on the condition of anonymity, emphasized that the decision was not influenced by current market conditions. As of the end of 2024, Morgan Stanley had more than 80,000 employees worldwide.

Morgan Stanley’s move follows a series of job cuts by major Wall Street banks in recent weeks as they brace for economic uncertainties. Rival investment bank Goldman Sachs has accelerated its annual performance review process and is expected to reduce its workforce by 3% to 5%. Meanwhile, Bank of America recently cut 150 junior banking positions in its investment banking division.

The financial sector has been facing increasing pressure as firms reassess their staffing levels. Despite expectations of a strong capital markets rebound following President Donald Trump’s election, market activity has remained muted. Many companies have hesitated to pursue mergers, acquisitions, and equity issuances due to uncertainties surrounding the administration’s evolving tariff policies.

Morgan Stanley's decision also reflects shifts in its global workforce strategy. According to Bloomberg News, some of the upcoming layoffs will be linked to employee performance, while others will stem from relocations or restructuring efforts within the firm.

Morgan Stanley Co-President Daniel Simkowitz acknowledged the current slowdown in deal-making during a conference on Tuesday. “New equity issues and mergers and acquisitions are certainly a bit on pause, or the bar is high because of some of the policy uncertainties,” he noted.

However, Simkowitz added that the bank is still investing in talent at senior levels within its investment banking division. This suggests that while Morgan Stanley is tightening costs in certain areas, it remains committed to strengthening key segments of its business.

As Wall Street navigates an uncertain economic landscape, banks continue to adapt their workforce strategies. With major financial institutions implementing job cuts to stay agile, the latest round of layoffs at Morgan Stanley underscores the industry's ongoing shift toward greater efficiency.