The U.S. bank plans more layoffs to combat rising costs and declining business, but none will come from financial advisor network.
February 2, 2009
NEW YORK - U.S. bank Morgan Stanley plans to cut about 3% to 4% of its work force, or up to 1,880 people, as it battles with spiraling costs and slowing business, according to a person familiar with the matter.
The cuts will mostly be in back-office jobs, which entail processing trades, since it trimmed front-office traders and bankers last year, the source said, adding that none of the cuts will come from the bank's network of financial advisers.
Morgan Stanley declined comment.
It had a total of 46,964 employees at the end of November, according to a filing with the U.S. Securities and Exchange Commission.
The bank slashed nonbroker jobs in several rounds last year as Chief Executive John Mack tried to better equip Morgan Stanley for a period of lower revenue.
Broker jobs have been saved because the wealth management business has been a bright spot for the company.
Earlier this month, Citigroup Inc (CIT, Fortune 500). agreed to merge its Smith Barney brokerage with Morgan Stanley's wealth business.
The deepening global recession has triggered more losses for Morgan Stanley's investment bank, and in December the company reported a wider-than-expected quarterly loss of $2.2 billion.
Shares in Morgan Stanley (MS, Fortune 500) rose 1.2% at $20.48 in afternoon trading. The company's shares have climbed more than 25% since the start of the year.
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