Business Insider reported that Morgan Stanley, the global financial services firm, is cutting 3% of its workforce both in the U.S. and abroad.

This move follows its spring 2025 decision to lay off nearly 2,000 workers. In the latest round, nearly 2,500 out of nearly 83,000 employees— spanning front-office revenue-generating roles and back-office support positions — will be without a job at Morgan Stanley, notes Business Insider.

According to the Wall Street Journal, investment banking and trading, wealth management, and investment management divisions will be impacted by the reduction.

Layoffs began last week and continued on Wednesday, Feb. 4, the outlet reports.

The decision to lay off workers was informed by changes in Morgan Stanley’s business and location priorities, along with job performance, an individual close to the matter told The Wall Street Journal.

Morgan Stanley logged $70.6 billion in annual revenue in 2025, a record for the company, reports Business Insider. Its investment banking division saw a 47% increase in the fourth quarter of the same year.

A source told Business Insider that Morgan Stanley will remain focused on scaling long-term and will continue to make decisions to reduce some sectors while supporting others with additional resources.

Layoffs Across Industries

Companies in other sectors have also announced layoffs, most recently technology and financial services company, Block. As AFROTECH™ previously reported, the company co-founded by Jack Dorsey — which owns Square, Cash App, and Afterpay — reduced its workforce from over 10,000 employees to just under 6,000. The decision comes as Block aims to embrace AI tools.

Other companies that have also announced layoffs include Heineken, a major brewer. As a result of its adoption of AI, it will be slashing up to 7% of its corporate workforce, per AFROTECH™.

A slew of other companies, including Amazon, IBM, and Verizon, have joined the list of companies conducting workforce reductions in favor of AI technology.

According to a separate AFROTECH™ article, AI led to more than 48,000 layoffs in 2025 in the U.S.