Morgan Stanley’s reported layoff of about 3% of its workforce — roughly 2,500 employees — is affecting some staff working on mortgage origination services for wealth management clients.
The bank is cutting positions across its estimated 83,000-employee global workforce due to shifts in business priorities, geographic strategy changes and individual job performance considerations, people familiar with the matter told The Wall Street Journal (WSJ), which first reported the layoffs.
A Morgan Stanley spokesperson did not immediately respond to HousingWire’s request for comment.
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.
