While Morgan Stanley had a headcount of at least 80,000 employees, globally, at the end of last year, this number is set to come down soon. After letting go 3,000 employees in China recently, the bank is now preparing to reduce its workforce by two to three per cent. About 2,000 employees will be let go by end of March, excluding financial advisors.
The objective is to make operations more efficient. The exercise is reportedly not in response to prevailing market conditions. Some of the layoffs will be based on performance while others are based on location changes say reports. However, Morgan Stanley bank is reportedly continuing to add people at senior ranks in the investment-banking division.
The workforce trimming in China earlier this month was prompted by challenges posed by the country’s declining stock market, impacting the $3.8 trillion fund sector outlook. The situation had pushed the bank to consider redirecting its focus towards cost reduction, anticipating a delayed rebound in deal making amid recession fears.
In December of 2024, Morgan Stanley Investment Management, China had initiated staff reductions, which had affected approximately 15 employees. That was the first instance of headcount reduction at Morgan Stanley’s China fund unit since acquiring full ownership in 2023.
Last year, Morgan Stanley had cut seven per cent roles in its investment-banking workforce in the Asia-Pacific region. As per media reports, the decision was influenced by strained relations with the US and a fall in economic growth, which had adversely affected deal- making activities.
