Morgan Stanley Layoffs: What’s Happening & Severance Rights in Canada

Morgan Stanley is eliminating approximately 2,500 jobs, or around 3% of its workforce, as part of a restructuring. (The Wall Street Journal)

The staffing reduction reportedly affects the bank’s 3 major divisions: investment banking and trading, wealth management, and investment management.

This page explains:

• What’s happening with Morgan Stanley layoffs
• Who’s most affected
• Whether a Morgan Stanley layoff is permanent
• How much severance Morgan Stanley employees in Canada may be owed
• What to do before signing a severance offer

Morgan Stanley Layoffs: A Timeline of Recent Job Cuts

Morgan Stanley has experienced several restructuring cycles in recent years, with job cuts that have affected teams linked to Canadian operations.

• March 2025: Morgan Stanley is planning to eliminate approximately 2,000 jobs to improve operational efficiency.
• Feb. 2024: Morgan Stanley is reportedly planning to cut hundreds of jobs in its wealth management division.
• May 2023: Morgan Stanley is reportedly planning to slash 3,000 jobs by the end of June due to “slow deal-making and a tough economic environment.”

Is a Morgan Stanley Layoff Temporary or Permanent?

For non-unionized employees at Morgan Stanley, a layoff is almost always treated as a termination without cause, even if the following language is used:

• “Restructuring”
• “Reorganization”
• “Transformation”
• “Temporary layoff”

Unless your employment contract explicitly allows for Morgan Stanley to temporarily lay you off, the company can’t place you on indefinite layoff without terminating your employment — meaning they must provide full severance pay.

Severance Pay for Morgan Stanley Staff

In Canada, non-unionized employees, including those at Morgan Stanley, are often owed far more severance pay than what’s outlined in their initial offer.

Severance is based on common law entitlements, not just minimum standards. Factors include:

• Age
• Length of service
• Position and seniority
• Availability of comparable jobs

In many cases, Morgan Stanley employees in Canada can be owed up to 24 months of compensation.

Severance may include:

• Base salary
• Continued benefits
• Bonus and incentive compensation
• Stock, equity, or RRSP contributions (where applicable)
• Vacation pay
• Other earned compensation

First offers often:

• Cover only minimum entitlements
• Exclude bonuses or incentives
• Impose short signing deadlines
• Undervalue long-service or senior employees

Severance Offers: Common Problems

Canadian employees affected by layoffs frequently report issues such as:

• Severance offers far below legal entitlements
• Missing or unclear compensation breakdowns
• Benefits cut off too early
• Bonuses excluded without justification
• “Temporary layoff” language used improperly
• Pressure to sign within 24–48 hours

Wrongful Dismissal and Morgan Stanley Layoffs

A wrongful dismissal occurs when major employers, including Morgan Stanley, fail to provide full severance required under common law.

You may have a claim if:

• Your severance offer is too low
• A termination clause isn’t enforceable
• You were pressured to accept your severance offer on the spot
• Bonuses or benefits were excluded from your severance package
• You were terminated while on medical, parental, or disability leave
• Morgan Stanley labelled your termination a “temporary layoff” without contractual authority

Large-scale layoffs at Morgan Stanley don’t reduce their legal obligations in Canada.

Laid Off at Morgan Stanley? Next Steps

If you’ve been laid off at Morgan Stanley:

1. Don’t sign your severance offer immediately
2. Gather your employment contract, bonus plans, and benefits information
3. Use the Severance Pay Calculator to double-check your entitlements
4. Keep records of your role, compensation, and length of service
5. Speak with an employment lawyer before agreeing to anything

Morgan Stanley Layoffs: Frequently Asked Questions

How much severance can Morgan Stanley employees receive?

Up to 24 months — depending on age, service, and position.

Are Morgan Stanley layoffs permanent?

For non-unionized employees, yes. A layoff is typically a termination.

Does Morgan Stanley have to include bonuses in severance?

Often yes — especially if bonuses were a regular part of compensation.

Can Morgan Stanley terminate employees on leave?

This can raise serious wrongful dismissal and human rights issues.

Can employment lawyers represent unionized Morgan Stanley staff?

No. Unionized employees at Morgan Stanley must go through their union.

Lost Your Job? Get Help Now

If Morgan Stanley has laid you off, or offered a severance/buyout package, don’t do anything before seeking legal advice.

Samfiru Tumarkin LLP, one of Canada’s most reviewed employment law firms, has helped more than 50,000 Canadians secure the compensation they’re legally entitled to.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.