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February 14, 2024 at 03:08 PM
Morgan Stanley is planning to eliminate several hundred jobs, the first such move under Chief Executive Officer Ted Pick.
The cuts will affect less than 1% of employees in the wealth-management business, which has about 40,000 workers and is the firm’s largest unit, according to a person with knowledge of the matter.
A representative for Morgan Stanley declined to comment.
Pick took the helm in January from James Gorman, who eliminated more than 3,000 jobs last year amid a renewed focus on expenses and a slump in fees from a dealmaking drought.
The bank’s shares have been the worst-performing among its biggest U.S. peers this year, down about 10%.
Last month, the company warned that it will take longer to achieve its profit-margin goals in the wealth unit and signaled that the below-target results will last a little while longer.
See: Morgan Stanley Warns of Wealth Unit’s Lower Margins
The division, which got a boost for much of last year from higher net interest income, could see that benefit start to fade if the Federal Reserve starts lowering interest rates later this year.
