Morgan Stanley, the financial firm whose shares have declined 45 percent this year, plans to cut about 1,600 jobs amid an industrywide drop in revenue from investment banking and trading.
Reductions will occur in the first quarter of 2012 at all levels of the firm, Mark Lake, a company spokesman, said in an interview today. The figure amounts to about 2.6 percent of the 62,648 employees New York-based Morgan Stanley had at the end of September.
CEO James Gorman is grappling with Europe’s debt crisis and concern that U.S. economic growth will slow, reducing demand for trading and investment-banking services. Morgan Stanley’s revenue from those businesses dropped 36 percent in the third quarter from the previous three months, excluding accounting adjustments.
The decision to reduce staff comes as “we conduct our year-end performance-management process and evaluate the right size of the franchise for 2012,” Lake said.,,,
Read more at http://www.bloomberg.com/news/2011-12-15/morgan-stanley-plans-to-cut-about-1-600-jobs-worldwide-in-first-quarter.html
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