Morgan Stanley Likely To Cut 3,000 Jobs
With the worsening economic environment and scarcity of business deals, Global Investment Bank Morgan Stanley is planning its second round of job cuts within six months.
The bank plans to remove roughly 3,000 jobs in the second quarter of FY23, according to Reuters.
The move comes after another quarter where the fees from the investment banking unit fell, taking total revenue down almost 2 per cent to USD 14.5 billion.
Sharon Yeshaya, Morgan Stanley’s Chief Financial Officer stated that “expense management” was of top priority in view of broader market unpredictability and elevated inflation.
The investment banks of Wall Street have all seen a downturn in deals as investors have grown wary about volatile markets as well as rapidly increasing interest rates.
Initial Public Offerings have also come to a standstill as startups have decided to postpone going public until investor mood improves.
The bank had more than 82,000 employees as of the end of March 2023, and with the layoff, 4 per cent of Morgan Stanley’s staff will be affected.
