Morgan Stanley (MS) Announces a Big Internal Change. The Stock Is Sinking

FomoAnxiety · 2026-03-05T19:32:10+00:00

Morgan Stanley is laying off 3% of its workforce, approximately 2,500 employees, across its divisions despite strong financial results. Financial advisors remain unaffected as the firm aims to boost operational efficiency. The stock has a Moderate Buy rating from analysts.

FomoAnxiety

2026-03-05 19:32:10

Abstract generation in progress

The stock of Morgan Stanley MS -3.88% ▼ is sinking on March 5 after the Wall Street investment bank announced that it is laying off 3% of its global workforce, or about 2,500 employees.

Claim 70% Off TipRanks Premium

Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

The layoffs are widespread and impact workers in Morgan Stanley’s three primary divisions: wealth management, investment management, and institutional securities, which includes investment banking and stock trading.

In wealth management, Morgan Stanley is letting some private bankers go, but the cuts primarily affect back-office support staff at the company’s corporate offices worldwide. The layoffs come despite Morgan Stanley reporting strong financial results for the fourth quarter and all of 2025.

Morgan Stanley said the layoffs are an effort to increase operational efficiencies.

Financial Advisors Spared

While the layoffs are widespread, Morgan Stanley is sparing its financial advisors. According to the bank, no financial advisors are being laid off, and neither are the support staff who work with them in the field. Morgan Stanley runs a growing and increasingly profitable wealth management and financial advisory business.

The investment bank has invested heavily in recruiting people and adopting new technologies to help expand its wealth management operations and improve its advisors’ capabilities. It has also made a concerted push to expand investor access to private companies. Morgan Stanley’s layoffs last year also didn’t include financial advisors.

Is MS Stock a Buy?

Morgan Stanley’s stock has a consensus Moderate Buy rating among 14 Wall Street analysts. That rating is based on five Buy, eight Hold, and one Sell recommendations issued in the last three months. The average MS price target of $185.17 implies 14.75% upside from current levels.

Disclaimer & DisclosureReport an Issue

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.