Laid off from Morgan Stanley.
Morgan Stanley's first big round under its new CEO cut about 2,000 people while revenues hit records, with AI cited as a reason and financial advisers explicitly exempted. Who was safe said as much as who wasn't.
At a glance
What's been reported about Morgan Stanley severance packages
- About 2,000 roles, 2 to 3% · March 2025 round
- The ~15,000 financial advisers · Explicitly exempt
- Low attrition, costs, AI absorption · Cited drivers
- Not published · Severance formula
The latest
About 2,000 cut in the first round of the Pick era
In March 2025 Morgan Stanley moved on about 2,000 roles, roughly 2 to 3% of the firm, its first significant reduction under CEO Ted Pick. The firm's 15,000 financial advisers were exempt, and some roles were cut because AI and automation had absorbed the work.
Previous rounds
How Morgan Stanley has handled layoffs in the past
Morgan Stanley's March 2025 round broke a quiet stretch. About 2,000 roles, the firm's first significant cut since Ted Pick became CEO, landed while the business was performing, and the firm finished the year down about 3% despite record revenues. The stated logic was cost control in the face of unusually low attrition, meaning not enough people were leaving on their own to shrink the workforce the quiet way.
Two details in the reporting mattered more than the number. First, the roughly 15,000 financial advisers were explicitly exempt, a clear statement about which businesses the firm considers untouchable revenue engines versus absorbable cost. Second, the firm acknowledged that some roles were eliminated because AI and automation had replaced the work, one of the earlier explicit AI attributions from a major bank rather than a vague efficiency framing.
Morgan Stanley has published no severance formula, and Wall Street separations at the firm have historically been governed by individual agreements where level and negotiation matter. The structural read from 2025 is the same one across banking. Cuts now arrive during good years as portfolio management, the protected roles are client-facing revenue producers, and the absorbable ones are operations and support, which is worth weighing honestly if you're deciding where inside the firm to build.
Recent Morgan Stanley layoffs
March 2025 · About 2,000 roles across the firm, sparing financial advisers, the first major reduction under Ted Pick, with the full year landing near 3% of the workforce despite record revenues
Terms not published. Reported drivers included performance, cost discipline, and roles absorbed by AI and automation.
Quick answers
What severance does Morgan Stanley pay?
Morgan Stanley hasn't published a formula, and separations have historically run through individual agreements where level and negotiation matter. Nothing about the 2025 round's individual terms was made public.
Why did Morgan Stanley cut jobs during record revenues?
The reported drivers were cost discipline, unusually low attrition, and roles absorbed by AI and automation, with financial advisers explicitly exempt. Cutting during good years as routine portfolio management has become the post-2024 pattern across banking.
What severance has Morgan Stanley given laid-off employees?
About 2,000 roles, 2 to 3% (march 2025 round). Packages change between rounds, and your separation agreement is the only version that counts.
Where do I file for unemployment after a Morgan Stanley layoff?
In the state where you worked, not where the company is headquartered. Morgan Stanley's biggest U.S. hubs are New York, Maryland. Severance usually doesn't block you from filing, and benefits run from your filing date, so file the same week.
Should I sign the severance agreement right away?
Not on the spot. First pin down how much review time you actually have. If you're 40 or older, federal law gives you 21 days to consider an agreement that waives age claims, 45 in a group layoff, and a waiver signed under a shorter deadline can be invalid. If you're under 40, no federal window applies and the deadline in your packet may be real, so confirm it in writing and ask for more time if you need it. Use whatever window you have to read the release terms, especially non-disparagement and no-lawsuit clauses, and don't stall past a real deadline, because offers can be withdrawn.
Can I collect unemployment if I got severance from Morgan Stanley?
Usually yes, though some states delay benefits until severance pay periods end, and lump sums are treated differently than salary continuation. Check your state's rules on our state benefit pages, and file immediately either way so your claim date is locked in.
Help for people recently laid off from Morgan Stanley
- File for unemployment in the state where you worked. Benefits run from your filing date, and severance usually doesn't block you. Morgan Stanley's biggest hubs: New York, Maryland. Somewhere else? Every state is here.
- Don't sign the severance agreement on the spot. Find out in writing how long you have to review it. At 40 or older, federal law guarantees 21 days, 45 in group layoffs. Under 40, the packet's deadline may be real, so ask for time rather than assume. Read our severance breakdown first. The clauses matter more than the number.
- Mind the health insurance window. Losing coverage opens a 60-day special enrollment period, and an ACA plan usually beats unsubsidized COBRA. Compare your options before the employer coverage lapses.
- Get your real runway number. Severance plus savings divided by reality. The calculator takes five minutes.
- Know which clocks are already running. Severance review windows, COBRA election, visa grace periods, and 401(k) rollovers all run on federal deadlines that started at termination. All five deadlines are here.