Morgan Stanley fires about 1,600 staff

SAN FRANCISCO: Global investment advisory firm Morgan Stanley has cut about 2 per cent of its global workforce, or about 1,600 employees, amid the global economic meltdown, the media reported.

The layoffs came after Morgan Stanley CEO James Gordon recently warned that “some people are going to be let go, as per a report, citing sources.

The company has about 81,567 employees and the layoffs will touch “nearly every corner of the global investment bank”.

The global investment bank was yet to comment on the report.

Morgan Stanley is following rival Goldman Sachs and other investment firms including Citigroup and Barclays in reducing their workforce.

“Banks typically trim 1 per cent to 5 per cent of those they deem their weakest workers before bonuses are paid, leaving more money for remaining employees,” the report mentioned.

Morgan Stanley has seen headcount swell in recent years, said the report. The bank’s employee strength went up by 34 per cent from the first quarter of 2020 to the third quarter of this year.