Thousands of Wall Street Employees Set to Lose Their Jobs This Month as AI Takes Over

Morgan Stanley plans to lay off 2,000 employees this month, citing cost-cutting and AI-driven automation. It’s the bank’s first major cut under new CEO Ted Pick and may signal a larger trend across Wall Street.

Key Facts:

Morgan Stanley will cut 2,000 jobs from its 80,000-person workforce in March 2025.
The cuts will not affect the bank’s 15,000 financial advisers.
Some positions are being eliminated due to poor performance; others are being replaced by AI tools.
A Bloomberg report found banks expect to reduce workforces by 3% in 3–5 years due to AI.
Morgan Stanley launched two AI tools in 2023 and 2024 that save advisers up to 15 hours weekly.

The Rest of The Story:

Morgan Stanley is moving forward with job cuts across multiple divisions in an effort to streamline costs and increase efficiency.

This marks the first major layoff since Ted Pick became CEO earlier this year.

Employees who remain unaffected include the bank’s 15,000 financial advisers.

While performance-based reasons are cited for some layoffs, automation and AI are playing a growing role.

Morgan Stanley has introduced internal tools that assist with tasks like research retrieval and meeting note-taking.

These innovations have improved productivity and contributed to record revenues of $61.8 billion in 2024.

According to a survey of 93 global banks, including JPMorgan and Goldman Sachs, AI-driven cuts could impact up to 200,000 jobs across the industry over the next few years.

Goldman Sachs is also making staffing changes, planning to reduce its workforce by 3% to 5%, with some positions moving to lower-cost cities.

Commentary:

The message from Wall Street is clear: AI is not just a passing trend—it’s reshaping the workforce.

Morgan Stanley’s layoffs are a strong indicator that white-collar jobs are just as vulnerable to automation as those in factories.

The tools being rolled out aren’t just saving time—they’re replacing the need for certain roles altogether.

For years, banks have talked about efficiency.

Now they’re acting on it with AI, showing how quickly technology can move from experimental to essential.

When senior executives say tools are saving employees 10 to 15 hours a week, it’s not hard to imagine entire job categories disappearing.

People working in finance, tech, and beyond must understand that the economy is shifting.

Jobs that once seemed secure are now on the chopping block because algorithms can do them faster and cheaper.

That’s a tough truth, but it’s also an opportunity for those willing to adapt.

Learning how to use AI effectively could be the difference between staying relevant and getting replaced.

The focus shouldn’t just be on job loss, but on job transformation.

What can workers do that AI can’t?

How can they use AI to do more, better, and faster?

There’s no denying that these changes will hit American workers hard—especially those not prepared for what’s coming.

But resisting change won’t stop it.

The smart move is to accept it, prepare for it, and find ways to thrive in it.

The Bottom Line:

Morgan Stanley is laying off 2,000 workers, with AI playing a key role in the decision.

Other banks are expected to follow.

This signals a major shift in how Wall Street operates and who it employs.

The rise of AI is happening fast, and those who don’t adapt may get left behind.