Morgan Stanley Cuts Payroll, Including In Wealth Division – Report

Editorial Staff

5 March 2026

Morgan Stanley is reported to bne shedding about 2,500 staff, equal to about 3 per cent of its entire payroll.

The cuts affect employees in the US firm’s three main divisions – wealth management, investment management, and investment banking and trading, according to the Wall Street Journal, March 4, citing unnamed sources.

Family Wealth Report has contacted Morgan Stanley for comment and may update this article in due course. It had not responded at the time of going to press.

The report said cuts are linked to shifting business and location priorities – as well as individual job performance - and are occurring both in the US and abroad.

The report also noted that Morgan Stanley’s 2025 financial results had been strong, with the wealth management unit delivering growth, for example. In the fourth quarter, wealth management revenue rose 13 per cent.

Wealth management job losses included private bankers and back-office staff, the WSJ said. Some of the affected staff work on producing mortgages for wealth management clients.

As the WSJ noted, white collar professions such as banking and wealth management are subject to a squeeze from AI – or so it is argued – as certain chores are replaced. Debate continues on whether AI will replace people or augment their roles, including raising their productivity and revenue production.