Morgan Stanley may be laying off about two per cent of its workforce. If media reports are to be believed, of the more than 81,000 people working for Morgan Stanley, across its global offices, about 1,600 may be rendered jobless.
As per a report by CNBC, the investment bank will be retaining its wealth management division, which forms a sizable segment, along with elite trading and advising activities. Other units, however, will see job cuts.
Morgan Stanley has seen a rise in headcount in recent years, like most of its rivals in the banking sector. The number of employees at the Bank increased by about 34 per cent between the first quarter of 2020 and the third quarter of 2022, even after taking into account the effects of two sizable acquisitions.
The Bank seems to be doing away with the under performers, as was the annual practice in investment banks even before the pandemic. Investment banks do trim their workforces by one to cent to five per cent before the time comes to dole out bonuses. This exercise allows for more bonus to be paid to the retained employees.
James Gorman, CEO, Morgan Stanley, had recently hinted at “moderate cuts” wordwide, as per Reuters, but had not revealed any more details. He had said that such cuts were not unexpected after a long period of growth.