Morgan Stanley is reportedly preparing to implement another round of job cuts as the firm seeks to manage expenses amid a delay in a rebound in dealmaking due to recession fears. According to sources familiar with the matter, senior managers at Morgan Stanley are discussing eliminating approximately 3,000 jobs from the global workforce by the end of the current quarter. This would represent approximately 5% of the firm’s staff, excluding financial advisers and support personnel within the wealth management division.
Morgan Stanley’s decision to cut approximately 3,000 more jobs comes on the heels of the firm’s previous announcement of trimming about 2% of its workforce, equivalent to 1,600 positions, at the end of last year. The move is part of the bank’s efforts to manage costs and remain competitive amidst the current market conditions.
The decision to reduce headcount follows a difficult period for Wall Street’s largest banks, which saw a slump in fees from assisting companies with takeovers and capital raising, often seen as a barometer of the economy’s health. The Federal Reserve’s attempts to combat inflation through rate hikes and the subsequent turmoil in the regional banking industry have further dampened activity.
