Morgan Stanley plans to cut 3,000 jobs

The US bank plans to eliminate jobs for the month of June

The US investment bank Morgan Stanley plans to eliminate approximately 3,000 jobs by the end of June, according to the US network CNBC, citing a source with knowledge of the entity’s plans.

The adjustment would equate to about 5 % of the bank’s workforce excluding financial advisors and support staff, who will be spared the cuts, and would come on top of the 2 % headcount reduction announced last month. December by the entity.

In this sense, according to Bloomberg, the layoffs are expected to affect the banking and commercial staff of Morgan Stanley to a greater extent.

After the historic boom in the markets during the pandemic, the rate hikes undertaken by the Federal Reserve to stop the overheating of the economy have caused an abrupt collapse in the activity of mergers and acquisitions and in IPOs.

In this way, numerous firms on Wall Street, including banks such as Goldman Sachs, Bank of America, Citigroup or Lazard, have been pushed to reduce costs through workforce adjustments with a view to positioning themselves for a future upturn in activity.

Morgan Stanley closed the first quarter of 2023 with a net attributable profit of $2.98 billion, which is equivalent to a decrease of 18.7 % compared to the earnings of the same period last year, while quarterly revenue suffered a drop of 1.9 %, up to 14,517 million dollars.

K. Tovar

Source: CNN

(Reference image source: Sven Piper, Unsplash)

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