India, March 5 -- Morgan Stanley has effected layoffs to cut about 3% of its workforce, or roughly 2,500 employees, despite a record year for revenue.

The job cuts were across the bank's three major divisions: investment banking and trading, wealth management, and investment management, but do not affect its financial advisors, WSJ reported. The Morgan Stanley layoffs are based on strategy and individual performance, and the bank intends to add headcount in other areas.

As on 31 December 2025, Morgan Stanley had 82,992 employees.

The Morgan Stanley layoffs come against the backdrop of a record year for revenues the US-based investment bank. It also beat Wall Street estimates for fourth-quarter profit in January, fueled by a 47% jump in...