The U.S. economy is facing significant uncertainty due to recent tariff measures, impacting both the nation's economic stability and credit standing. This has led to a wave of layoffs sweeping across Wall Street. Morgan Stanley (MS, Financial) is reportedly planning to lay off approximately 2,000 employees by the end of the month, representing 2% to 3% of its workforce, excluding financial advisors. Sources indicate that these layoffs are not directly related to current market conditions but are aimed at improving operational efficiency.
This move by Morgan Stanley follows a series of layoffs by other major Wall Street banks in recent weeks. After the U.S. announced new tariffs on its trade partners, Wall Street banks have been bracing for increased economic uncertainty. Several financial institutions in the U.S. have already conducted layoffs in 2025. In February, JPMorgan Chase cut around 1,000 jobs, while Bank of America’s investment banking division eliminated 150 junior positions in early March. Goldman Sachs has also expedited its annual performance review process and plans to lay off 3% to 5% of its workforce.
These layoffs by major investment banks reflect the financial industry's apprehension about the economic outlook. Additionally, stock prices of several Wall Street investment banks have experienced considerable volatility in recent weeks due to factors like tariffs. For instance, after reaching a new high of $280.25 in February, JPMorgan Chase's stock price underwent a three-week decline, rebounding slightly this week but still down more than 10% from its February peak.
