Morgan Stanley Lays Off Workers

Morgan Stanley Lays Off 1,600 Workers

GLOBAL – Sources revealed that Morgan Stanley retrenched around 2 percent or about 1,600 of its 81,567 employees across the globe on Tuesday, with the layoffs impacting almost every department of the global investment bank, reported CNBC on Wednesday morning (7 December, SGT).

Morgan Stanley is following competitors, such as Barclays, Citigroup, Goldman Sachs, and other financial firms, in re-imposing a Wall Street ritual – the yearly culling of lacklustre performers. Usually, US banks cut 1 to 5 percent of their underperformers before bonuses are handed out, so that more money would be left to the remaining staff.

The sector paused the practice in 2022 after the virus outbreak triggered a two-year boom in transactions. However, deals plunged this year after the US Federal Reserve aggressively hiked interest rates to tame inflation. The last company-wide retrenchment at Morgan Stanley occurred in 2019.

Sources shared that financial advisors are among the few types of employees exempt from the layoffs as they generate revenue by overseeing customers’ assets. Notably, the New York-based global investment bank is famous for its top-tier trading and advisory operations as well as large wealth management division.

Similar to its rivals, Morgan Stanley’s head count spiked in the past few years. In Q3 2022, its employee increased sharply by 34 percent compared to the 1st quarter of 2022, partly due to 2 massive acquisitions.

Last week, Morgan Stanley’s Chief Executive James Gorman told Reuters that the investment bank is preparing for “modest cuts,” but refused to disclose the exact numbers or when it will be implemented.

“Some people are going to be let go,” he said, adding that’s what leaders do in most companies following many years of growth.

Free Finding Service