Morgan Stanley is set to trim some 1,500 jobs, or 2% of its workforce, by year-end, which may bring the firm down to about 59,000 employees. These cuts should include some managers in sales, trading and research, according to a Bloomberg report, but are focused on the technology and operations divisions.
Reasons for the job cuts include the need for better efficiency in light of a continued slump in trading revenue, which have prompted Citigroup and others to reduce their workforce.
The cuts being carried out also include senior executives in its currency and bond desks in New York and London, the news story said.
Two weeks ago, Bloomberg reported that Morgan Stanley was reviewing possible improper valuations of foreign exchange options and the related concealment of as much as $140 million in losses.
Still, the bank could see its stock end the year up 25% and its fixed income trading produce revenues up by 10% from last year.
In the third quarter, Morgan Stanley’s profits grew 2% to $2.17 billion, or $1.27 per share from a year ago, topping estimates. Sales were $10.1 billion in revenue, which the firm said were the strongest in a decade.