Morgan Stanley to cut 2,000 jobs, will AI replace them?

Word on the street is Morgan Stanley is about to make some big cuts. Around 2,000 employees could be out of a job later this month. That’s a lot of people. This is the first big layoff since the new CEO, Ted Pick, took over back in January.

Where Will the Cuts Happen?

Pretty much everywhere, it seems. Except for the financial advisors. Those 15,000 jobs are safe, for now. The goal? To save money. Fewer people quitting means they need to find other ways to cut costs.

Why Are People Losing Their Jobs?

A couple of reasons. Some folks just weren’t performing well. But the bigger reason? AI. Automation is taking over some roles. One source said Morgan Stanley expects even more job cuts because of AI in the future.

Morgan Stanley Isn’t Alone

It’s not just them. Other big banks are planning similar cuts. A recent report looked at what tech leaders at 93 major banks are thinking. The result? They expect to cut about 3% of their staff in the next few years because of AI. That could mean up to 200,000 jobs on Wall Street are at risk.

AI to the Rescue? Or the Reason?

Morgan Stanley has been rolling out AI tools for its employees. One tool helps financial advisors find information faster. Another takes notes during client meetings. Ted Pick even said these tools could save employees 10 to 15 hours a week. “Game-changing” he said? Maybe.

AI = More Money?

Executives are saying AI is helping the bank make more money. Pick told CNBC that AI makes the bank more efficient. Last year, Morgan Stanley made record revenue. Coincidence?

More Banks Cutting Jobs

Goldman Sachs is planning cuts too. They might cut 3% to 5% of their workforce. Some managers might even have to move to different cities. Places like Salt Lake City and Dallas.

What Does This Mean?

The writing is on the wall. AI is changing things. Fast. Are these job cuts a sign of things to come? Only time will tell.