By Admin 
Morgan Stanley Layoff: Morgan Stanley, the world’s largest banking company, is preparing to lay down 2,000 out of its 80,000 employees this month. This trimming will be the first major cut under the leadership of the company’s new CEO Ted Pick, which took over the company in January 2024.
Why is the sorting
According to Bloomberg’s report, this layoff will affect different divisions of the company, but 15,000 financial advisors will be protected from it. The company aims to reduce the expenses, as the rate of leaving the company’s company is quite low.
Some employees will be taken out on the basis of performance, while some have been replaced by AI and automation. According to a Bloomberg source, AI may reduce more jobs due to AI in the coming years. At the same time, some experts are also looking at it with the change in the policy after the tariff policies of Trump and the changes in the policy. He believes that many clients of this firm were affected by these changes, due to which Morgan Stanley was likely to be trimmed.
AI’s increasing dominance
It is not that Morgan Stanley is reducing jobs due to AI alone. According to a report by Bloomberg Intelligence, 93 big banks like JPMORGAN and Goldman Sachs admitted that 3 per cent of jobs in their banks in the next 3 to 5 years would end due to AI. This means that 200,000 jobs are threatened on Wall Street.
Let me tell you, Morgan Stanley has also launched many AI tools for his employees. In September 2023, the bank launched an AI Knowledge Assistant Tool, which helps financial advisors find early information in research. In June 2024, another AI tool was launched, which takes notes during video meetings with clients and suggests action items.
CEO Ted Pick told investors in June that these AI tools can save 10 to 15 hours per week. He said, “It can prove to be really a game-changing.”
Why pruning despite record revenue?
Morgan Stanley earned a record revenue of 61.8 billion in 2024, which is more than 54.1 billion in 2023. Nevertheless, the company has decided to trim. One of the reasons for this is AI and automation, which is reducing the needs of employees.
Apart from this, many banks are also reduced jobs due to economic uncertainty on Wall Street. Morgan Stanley’s rival Goldman Sachs has also planned to lay out 3 % to 5 % of its 46,500 employees in the next few months.
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