Morgan Stanley cuts staff by 10%

by Gill Montia

Story link: Morgan Stanley cuts staff by 10%

Morgan Stanley has announced plans to cut 10% of staff from its investment banking and sales and trading divisions.

The group is also proposing to restructure its asset management business in a way that will leave around 9% of staff surplus to requirements. However, its global wealth management business will be left in tact.

Earlier this year the bank, which employs around 44,000, reduced its headcount on a similar scale and the current round of cuts mean that job loses are to be expected among the London-based staff of Morgan Stanley’s institutional securities and asset management unit.

In September, the US Federal Reserve allowed Morgan Stanley to change its status from an investment bank to a bank holding company, in the wake of the collapse of Lehman Brothers.

The move has allowed the business permanent access to emergency funding from the US Treasury but has also brought changes to the way in which it is regulated.