Did AI Push People Out? Morgan Stanley to Cut 2,500 Jobs Despite Record Earnings

[Financial News] U.S. investment bank Morgan Stanley will cut 2,500 jobs across all of its business units. The layoffs represent about 3% of its total workforce.
According to The Wall Street Journal (WSJ) on the 4th local time, the job cuts span the bank’s three core divisions: investment banking and trading, wealth management, and investment management. The reductions are taking place not only in the United States but also at overseas offices.
The news comes after Morgan Stanley reported its best year ever in 2024. The bank posted record annual revenue in its investment banking and trading operations, as well as in its wealth management division.
Morgan Stanley and other Wall Street firms have enjoyed blockbuster results, helped by increased deal activity among large corporations, stronger trading demand amid market volatility, and continued investment by wealthy clients.
At the same time, major U.S. companies have been cutting thousands of white-collar jobs. Some have cited efficiency gains from adopting artificial intelligence (AI) as a key reason.
For example, payments company Block recently announced plans to cut more than 4,000 of its 10,000 employees. Block pointed to rapidly advancing AI models as a driver of the layoffs, saying the technology allows the company to accomplish more work with fewer people.
Software company Salesforce also cut about 4,000 customer support staff last year, citing advances in AI technology. Social media platform Pinterest likewise said it would lay off roughly 15% of its workforce to shift more resources into AI-related roles.
whywani@fnnews.com Reporter Hong Chae-wan Reporter