Morgan Stanley plans to eliminate approximately 2,000 positions by the end of March to enhance operational efficiency. This reduction, representing 2-3% of the workforce, marks the first major layoff since Ted Pick became CEO in January 2024. The cuts will not affect the 15,000 financial advisors. The firm employed over 80,000 individuals at the close of 2024.
These reductions are attributed to automation and location strategy changes, with some roles being replaced by artificial intelligence. This move aligns with similar workforce reductions at other Wall Street firms, including Goldman Sachs and Bank of America, as companies prepare for potential economic challenges.
Separately, Santander, the Spanish banking firm, announced the closure of approximately 95 branches in the United Kingdom, resulting in the layoff of around 750 employees. This decision, revealed on March 19 and set to take effect from June 2025, is part of a restructuring plan to balance digital operations with physical presence.