Morgan Stanley (MS.US) is planning to slash 2,000 jobs in an effort to reduce costs, and its 6% year-to-date stock price decline has exposed market concerns.

Morgan Stanley (MS.US) will initiate the first major round of layoffs under new CEO Ted Pick this month, with plans to cut about 2,000 jobs across the company, excluding the 15,000 financial advisers. The Wall Street giant, which has 80,000 employees, began planning the move before recent market volatility, according to insiders, mainly to optimize its cost structure and address talent retention pressure. A spokesperson declined to comment. Shares have fallen 6% this year, according to data.The layoffs are seen as a continuation of the latest wave of belt-tightening on Wall Street, with goldman Group (GS.US) already cutting 3%-5% of its workforce in the spring, ahead of its planned year-end cuts.Banking insiders say the lack of expected trading activity amid uncertainty over Trump administration policies and tariff adjustments has prompted institutions to take early action to scale back.Despite Dan Pinto, co-president of morgan stanley, acknowledging that M&A and IPO activity has "clearly slowed", he stressed that the company is expanding its investment banking core team to prepare for a market recovery.The restructuring is noteworthy for its structural features: some jobs are being cut due to underperformance, some are being relocated as part of business migration, and a small number are being affected by the application of AI technology - a sign that the job replacement effect brought by automation will continue to be seen.Since Pick took over as CEO and chairman in early 2024, he has continued the strategic framework of his predecessor James Gorman. However, the stock has fallen 6% this year, lagging major banks, reflecting investors' cautious attitude towards the current strategic adjustment.Despite US Treasury Secretary Scott Baisett saying this week that "market adjustments are healthy and normal", the continued personnel contraction in the banking industry reflects deep concerns about the economic outlook.