The job cuts will be mainly from senior bankers in the bank’s institutional securities group, a division which co-ordinates big M&A deals for firms and also trades shares on behalf of its customers. The cuts will constitute around 6% of the headcount in that department.
Morgan Stanley’s chief executive, James Gorman, has reportedly had plans to do something like this since October, when he told the FT: ‘[There is] way too much capacity and compensation is way too high’ across the banking industry as a whole.
The bank already culled 4,000 bankers in 2012, and joins the ranks of other Wall Street stalwarts cutting jobs. Citigroup this week announced that it has an 11,000-job jettison planned for this year.
Looks like the new Aston Martin will have to wait, chaps.