Job cuts are reportedly occurring across multiple divisions, including investment banking, trading, investment management and wealth management. Within wealth management, private bankers and back-office support staff were among those affected.
Layoffs began last week, with many occurring Wednesday, according to sources cited by WSJ.
The restructuring comes despite a financially strong year for the bank. Morgan Stanley reported $70.6 billion in full-year net revenue in 2025, up from $61.8 billion the prior year. Net income attributable to Morgan Stanley rose from $13.4 billion to $16.9 billion during the same period.
In the mortgage market, New York-based Morgan Stanley ranks as the 33rd-largest U.S. lender, generating about $13 billion in mortgage volume in 2025 — a 19% year-over-year increase, according to Inside Mortgage Finance.
Data from RETR shows the bank primarily focuses on purchase and conventional loans, with an average loan size of about $918,000.
