Morgan Stanley quietly lays off 2,500 employees — but this time, AI isn’t the reason
The biggest companies in the world are laying off employees by the thousands lately, and the latest to follow that trend is Morgan Stanley. It was recently reported that the investment bank let go of 3% of its global workforce, which equates to around 2,500 employees. The cut affected several departments, but the company’s financial advisors remained safe. This is the latest in big companies letting go of their employees this year.
As per a report in Fox News, the most affected departments were investment banking and trading, wealth management, and investment management. Some may believe that these cuts had their roots in AI, but the report claims something different. It says that the cuts were based on business priorities, location strategy, and individual performance, and that the bank plans on adding resources in other areas. No matter what the reason may be, thousands are once again left without jobs.
The surprising part about this wave of layoffs is that Morgan Stanley is far from being strapped for cash. Just last quarter, it surpassed all expectations of profits thanks to a 50% rise in investment banking revenue. Other companies that have laid off employees recently have mostly done so due to AI integration into their workforce, which often renders several roles obsolete.
However, Morgan Stanley believes that in the long run, AI will be beneficial for most employees. It said that AI may not force employees to retire early and that workers should train themselves for new occupations that don't yet exist but will be created by the AI boom. “While some roles may be automated, others will see enhancement through AI augmentation, and others, entirely new roles will be created,” a company report stated. "AI will merely change job types, occupations, and needed skills.”
The investment bank has predicted that new roles will open up as more and more companies start integrating AI into their workflow. This will lead to a growth in AI governance positions centered on data security and compliance, particularly in the healthcare industry. Morgan Stanley also predicted more executive-level "chief AI officers" to supervise technology adoption, and claimed that the IT industry may see hybrid jobs thanks to language coding tools.
Employees are being rapidly laid off in several companies, thanks to AI at the moment. The technology has transformed the job market drastically as firms push for automation. Even Jack Dorsey recently fired more than 4,000 people from Block, while making a pretty alarming prediction. “The core thesis is simple. Intelligence tools have changed what it means to build and run a company. We're already seeing it internally. A significantly smaller team, using the tools we're building, can do more and do it better. And intelligence tool capabilities are compounding faster every week,” Dorsey wrote.
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