✎ Contributed by Ty Griffin
Morgan Stanley has announced plans to reduce its workforce by approximately 2,000 employees, representing about 2.5% of its global staff of 80,000. This move marks the first significant workforce reduction under CEO Ted Pick and aligns with broader cost-cutting trends across the banking industry.
Performance of Major Public Banks
As of March 19, 2025, the stock performance of major public banks is as follows:
• Morgan Stanley (NYSE: MS): Trading at $119.55, up 1.22% today.
• Goldman Sachs Group Inc. (NYSE: GS): Trading at $555.20, up 0.62% today.
• Bank of America Corp. (NYSE: BAC): Trading at $42.02, up 0.89% today.
• JPMorgan Chase & Co. (NYSE: JPM): Trading at $238.40, up 1.46% today.
• Citigroup Inc. (NYSE: C): Trading at $71.16, up 1.34% today.
Industry-Wide Workforce Reductions
Morgan Stanley’s decision follows a pattern seen across major financial institutions:
• Goldman Sachs (NYSE: GS): Plans to reduce its workforce by 3% to 5% in May 2025 as part of its pre-COVID annual layoff schedule.
• Bank of America (NYSE: BAC): Recently eliminated 150 junior banker positions in its investment banking division.
• JPMorgan Chase (NYSE: JPM): Initiated layoffs affecting fewer than 1,000 employees in February 2025, with additional reductions expected throughout the year.
Key Drivers Behind Workforce Cuts
• Automation & Artificial Intelligence: Advancements in AI-driven financial technology continue to reduce the need for human employees in some roles.
• Economic Uncertainty: Inflation, interest rate fluctuations, and global trade policies are prompting banks to reassess staffing needs.
• Declining Deal Volumes: A slowdown in mergers and acquisitions activity has impacted revenue streams, leading firms to implement cost-cutting measures.
Outlook
As the financial industry adjusts to evolving economic conditions and technological advancements, further workforce reductions may be expected. Analysts predict that banks will continue to focus on efficiency, with hiring concentrated in high-growth areas such as wealth management and AI-driven financial services.
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