As Artificial Intelligence (AI) continues to transform industries and uncertainty surrounds US President Donald Trump’s economic policies, several Wall Street giants and tech leaders are heading towards significant workforce cuts in 2025, according to an NDTV Profit report, today, Wednesday, March 19.
Major companies like Amazon, Morgan Stanley, Intel, Morgan Stanley, and Goldman Sachs are at the forefront, prioritising cost-cutting and operational efficiency in a rapidly evolving landscape.
Morgan Stanley
Investment banking corporation Morgan Stanley is set to slash approximately 2,000 jobs by late March 2025, trimming its workforce by 3%.
This reduction, reported by Bloomberg, will primarily spare financial advisers but affect other roles across the firm. With a workforce exceeding 80,000 in 2024, the move is a strategic move to optimise costs amid AI advancements and economic unpredictability tied to Trump’s administration.
Amazon
E-commerce company Amazon is set to eliminate around 14,000 managerial positions by the end of Quarter 1 2025, a decision projected to save $3 billion annually, according to a Morgan Stanley analysis from October 2024.
CEO Andy Jassy is aiming to boost the individual contributor-to-manager ratio by 15%. The company’s shift to a mandatory five-day workweek in January 2025 has been dubbed a “backdoor layoff” tactic, hinting at voluntary exits by reducing workplace flexibility, a signal of Amazon’s push toward an AI-enhanced operation.
Goldman Sachs
Goldman Sachs, a key rival to Morgan Stanley, plans to reduce its workforce by 3-5% following its annual performance review, as reported by Reuters.
This move comes with the firm’s old practice of shedding underperformers and is now amplified by AI’s growing role in finance and the need to stay fast amid shifting economic policies under Trump. The exact number of affected employees remains unspecified.
Intel
Intel, under incoming CEO Lip-Bu Tan, is reevaluating its AI strategy after a staggering $19 billion loss in 2024. Tan’s focus on trimming “bloated middle management” hints at imminent layoffs, with Reuters noting his recent warning of “difficult choices.”
Other companies riding the layoff wave
- Bank of America: Last week, the bank cut 150 junior banker positions, though most affected employees will be reassigned outside investment banking.
- Workday Inc: Reports indicate an 8.5% workforce reduction, impacting roughly 1,700 employees, as the company adjusts to market pressures.
- Salesforce: In February 2025, Salesforce announced plans to shed over 1,000 jobs, marking its first major layoff of the year.
