Morgan Stanley is set to cut around 2,500 jobs globally despite reporting record revenues last year, highlighting growing tension between strong financial performance and ongoing cost-cutting across the banking sector.
The Wall Street giant plans to reduce its workforce by roughly 3 per cent across several divisions, including investment banking and trading, wealth management and investment management. The reductions, first reported by The Wall Street Journal, were understood to have begun earlier this week.
The cuts come despite the bank posting one of the strongest financial performances in its history. Morgan Stanley reported annual revenues of $70.65 billion for the year, representing a 14 per cent increase compared with the previous year. Net income rose even more sharply, climbing 26 per cent to $16.9 billion.
Sources familiar with the restructuring said the layoffs were linked to shifting business priorities, location adjustments and performance reviews rather than a single strategic overhaul.
Unlike some previous rounds of restructuring in the financial sector, the bank’s wealth management financial advisers are understood not to have been affected by the job cuts. Instead, reductions are concentrated in support roles and operational teams across several departments.
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