New Wave of Layoffs: Amazon Cuts Robotics Unit, Morgan Stanley Lays Off 2,500 Employees

On March 4, 2026, two giants from the technology and financial sectors announced a new wave of layoffs, continuing the trend of job cuts sweeping through major U.S. companies at the start of 2026 amid mounting pressures from artificial intelligence and shifting strategic priorities.

Amazon confirmed layoffs in its robotics unit, with sources telling Reuters that at least 100 white-collar positions are affected. The impacted unit designs robots and automated transportation systems for Amazon warehouses. Scott Dresser, Amazon’s Vice President of Robotics, told employees the cuts are difficult but necessary, reiterating that robotics remain a strategic priority. Amazon stated: “We regularly review our organizations to ensure our teams are best positioned to innovate and serve our customers,” without disclosing the exact number of roles cut.

These layoffs follow Amazon’s January decision to halt development of the Blue Jay robotic arm, designed for tight spaces and multi-item handling. Amazon previously laid off around 16,000 employees in January and 14,000 in October, totaling over 30,000 office positions cut since late 2022, as CEO Andy Jassy restructures to reduce bureaucracy and leverage AI-driven efficiency gains.

Meanwhile, the Wall Street Journal reported that Morgan Stanley has laid off 2,500 employees - about 3% of its 80,000-strong global workforce - across its three main divisions: investment banking and trading, wealth management, and investment management. The layoffs affected staff in the U.S. and abroad, with most occurring on Wednesday, though the process began the previous week. The main reasons cited are reallocating resources to high-growth areas, individual performance reviews, and expanded use of AI, which automates many routine tasks and reduces the need for certain roles. In March 2025, Morgan Stanley had already announced similar cuts affecting about 2,000 employees.

This day’s events are part of a broader pattern as major firms invest in AI infrastructure while reducing traditional jobs. Morgan Stanley continues to post strong financial results, reporting an 18% increase in Q4 2025 profits, suggesting the layoffs are strategic rather than due to financial distress.

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