Morgan Stanley In Spotlight After Reports Of Workforce Reduction, Retail’s Yet To React

Morgan Stanley (MS) is expected to be on retail radar on Wednesday after reports said the bank plans to lay off about 2,000 employees later this month.

Bloomberg reported on Tuesday that the job cuts, the first significant workforce reduction under CEO Ted Pick, would take place across the firm, except for its roughly 15,000 financial advisers.

The report, citing people familiar with the matter, stated that the plans to trim its workforce were drafted before recent market volatility. The bank has more than 80,000 employees.

The Bloomberg report said that the move is aimed at reining costs as executives grapple with minimal attrition in their ranks.

The report said some of the upcoming cuts are linked to performance while others are the result of changes in where the firm bases some of its workers.

A small part of the affected jobs reflects the impact of artificial intelligence and automation inside the Wall Street bank, a trend that would drive a rising portion of job reductions in the coming years, the report said, citing one of the people.

Financial institutions in the U.S. are navigating tumultuous market conditions as tariff threats have renewed concerns of a recession.

According to The Fly, Erste Group downgraded Morgan Stanley earlier this month. The brokerage noted the bank’s investment banking segment, particularly, is suffering from increased uncertainty caused by the current U.S. tariff policy and weak economic growth.

Retail sentiment on Stocktwits remained in the ‘neutral’ (45/100) territory in the early hours, while retail chatter was ‘normal.’

Morgan Stanley shares have fallen about 6% year-to-date (YTD). They have fallen more than 16% over the past month.

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