Morgan Stanley to cut 1,500 jobs to trim expenses
Morgan Stanley, the second-biggest US investment bank, has started cutting about 1,500 positions in the US to trim expenses amid further market turmoil, a person familiar with the plan said on Tuesday.
By Agencies |
NEW YORK: Morgan Stanley, the second-biggest US investment bank, has started cutting about 1,500 positions in the US to trim expenses amid further market turmoil, a person familiar with the plan said on Tuesday.
The job cuts are the latest to sweep Wall Street as investment banks have been reeling from the global credit crisis that began last summer. Massive losses in mortgage-backed securities and other risky investments has caused global banks to write down more than $ 200 billion.
Morgan Stanley plans to cut 1,500 positions from its payrolls, which represents about 5 per cent of total employees, according to a person familiar with the plan who spoke on condition of anonymity because he was not authorised to speak publicly. The reduction will come mainly from back-office jobs, asset management and its institutional business, though retail positions such as broker will be left untouched.
"We are constantly evaluating business conditions to ensure we are right-sized for the environment," said bank spokesman Mark Lake.
He said the company, which has about 47,000 employees worldwide, continues to hire for jobs in key areas such as emerging markets.
Job cuts were not unexpected for Morgan Stanley after its turnaround orchestrated by Chief Executive John Mack was stopped short last year. During the fourth quarter, the securities firm announced USD 3.6 billion loss and secured $ 5 billion in investment from China's state-run sovereign fund.
The job cuts are the latest to sweep Wall Street as investment banks have been reeling from the global credit crisis that began last summer. Massive losses in mortgage-backed securities and other risky investments has caused global banks to write down more than $ 200 billion.
Morgan Stanley plans to cut 1,500 positions from its payrolls, which represents about 5 per cent of total employees, according to a person familiar with the plan who spoke on condition of anonymity because he was not authorised to speak publicly. The reduction will come mainly from back-office jobs, asset management and its institutional business, though retail positions such as broker will be left untouched.
"We are constantly evaluating business conditions to ensure we are right-sized for the environment," said bank spokesman Mark Lake.
He said the company, which has about 47,000 employees worldwide, continues to hire for jobs in key areas such as emerging markets.
Job cuts were not unexpected for Morgan Stanley after its turnaround orchestrated by Chief Executive John Mack was stopped short last year. During the fourth quarter, the securities firm announced USD 3.6 billion loss and secured $ 5 billion in investment from China's state-run sovereign fund.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
