Morgan Stanley Cuts 1,200 Jobs

Published by: Frank Galvano on 9th Dec 2015 | View all blogs by Frank Galvano

Morgan Stanley Cuts 1,200 Jobs

In response to its slowest quarter since the recession for bond trading, Morgan Stanley has cut some 1,200 jobs around the globe in recent days.  According to reports, the cuts were broad-based, with the bank's fixed income and commodities business shedding about a quarter of its staff.  About 730 of the layoffs were back-office jobs across a number of divisions.  In a memo to employees Tuesday, leadership said the cuts will result in businesses that are “critically and credibly sized for the current market.”

A number of Wall Street firms have experienced a lull in trading activity, and a dip in revenue, since the market crashed last summer.  Morgan Stanley has been especially impacted, suffering a 42 percent slide in fixed income trading revenue in the third quarter.  The company's shares have fallen 12 percent this year, more than double the decline seen in shares of rivals Goldman Sachs and Bank of America.  JPMorgan Chase, meanwhile, has seen its shares rise 6 percent since January.

While other parts of Morgan Stanley are in better shape than fixed income trading (advisory revenue surged last quarter), this week's job cuts would seem to indicate the bank isn't expecting a quick rebound.  Things could get even worse next week, when the Fed is widely expected to raise interest rates.  The cost of trading has already gotten more expensive in recent years due to regulations, and higher interest rates would only exacerbate the problem.  

Comments

0 Comments

     
Please login or sign up to post on this network.
Click here to sign up now.

Latest DT's

  • View DT's
    Here's a great bio that Full in Bloom did for the band Possessedhttp://fullinbloommusic.com/biography-possessed.html View DT's
    2 years ago by Geno
  • View DT's
    Rated: PG-13 In Theaters: January 24th Director: Stuart Beattie Starring: Aaron Eckhart, Bill Nighy, Yvonne ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: PG-13 In Theaters: January 10th Director: Renny Harlin Starring: Kellan Lutz, Gaia Weiss, Scott Adkins View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: R In Theaters: December 4th Director: Scott Cooper Starring: Christian Bale, Casey Affleck, Zoe Saldana, Sam ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: PG-13 In Theaters: December 13th Director: Peter Jackson Starring: Ian McKellen, Martin Freeman, Richard ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: R In Theaters: January 3rd Director: Gregory Plotkin Starring: Andrew Jacobs, Jorge Diaz, Gabrielle Walsh View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: TBD In Theaters: February 7th Director: George Clooney Starring: George Clooney, Matt Damon, Bill Murray, Cate ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: PG-13 In Theaters: January 17th Director: Tim Story Starring: Ice Cube, Kevin Hart, John Leguizamo, Bruce ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: R In Theaters: January 17th Directors: Matt Bettinelli-Olpin, Tyler Gillett Starring: Allison Miller, Zach ... View DT's
    3 years ago by dallaseste

Top Authors

Subscribe