Morgan Stanley to Cut 1600 Jobs
NEW YORK (TheStreet) -- Morgan Stanley(MS) will cut 1,600 jobs from its investment bank in the coming weeks, people familiar with the matter confirmed to TheStreet on Wednesday.
The cuts amount to 6% of the total workforce within its institutional securities group and infrastructure support. About half of the cuts will be in the U.S. The layoffs will be across the board, though there will be a focus on senior employees.
The downsizing effort is in addition to layoffs announced last year, when the bank reduced its staff by 7%.
Banks are continuing to slash jobs as they focus on expenses in a lackluster revenue environment.
Citigroup(C) notably said it would lay off 11,000 workers or 4% of its workforce, in an early move by new CEO Michael Corbat to improve efficiencies in the business.
Bank of America(BAC) is in the midst of a cost-cutting plan that involves laying off 30,000 workers.
Analysts have welcomed banks' efforts to reduce expenses, evidenced by the slew of buy calls on Citigroup following its layoff announcement.
Morgan Stanley CEO James Gorman has himself been a critic of Wall Street's hefty compensation packages and has warned employees that the days of excessive pay are over.
Shares of Morgan Stanley were off by 0.3%.
--Written by Shanthi Bharatwaj in New York
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