Morgan Stanley planning to cut 3,000 jobs, second mass layoff in months

After cutting around two per cent of its workforce in December, Morgan Stanley is reportedly planning to pull out the axe again.

Sources have told major news outlets, including Bloomberg and CNBC, that the bank is looking to lay off approximately 3,000 employees, or five per cent of its workforce, by the end of June.

The majority of the cuts are expected to affect banking and trading workers. Financial advisors and support staff will remain unscathed.

A person with knowledge of the plans told Reuters on May 1 that “slow dealmaking and a tough economic environment are prompting [Morgan Stanley] to look at its headcount.”

According to reports, the bank had more than 82,000 employees at the end of March.

Impact on Canadian staff

Morgan Stanley didn’t disclose how many Canadian workers are affected by the latest round of cuts.

The bank claims on its website that it has more than 2,200 employees across its six offices in Toronto, Montreal, Calgary, and Vancouver.

Major layoffs continue

Morgan Stanley joins the growing list of major North American companies that have announced sweeping layoffs in 2023.

Several big names, including Dropbox, Lyft, Meta, Amazon, Accenture, Alphabet, Clearco, and Microsoft, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

SEE ALSO
• Goldman Sachs cutting more than 3,000 jobs following cost review
• McDonald’s tells corporate staff to work remotely ahead of layoffs
• Layoffs in Canada

Termination agreements for Morgan Stanley employees

In Canada, non-unionized employees and senior executives at Morgan Stanley are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance packages in mass layoffs
• Rights to severance for provincially regulated employees
• Severance pay in a recession 

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper compensation if it falls short of what you are actually owed.

If you aren’t given the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.