1,600 Morgan Stanley bankers face the axe

It's not so much a rich man's world as a tense meeting and a redundancy package for 1,600 Morgan Stanley bankers, due to be culled in a cost-cutting drive.

by Michael Northcott
Last Updated: 19 Aug 2013

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.

Find this article useful?

Get more great articles like this in your inbox every lunchtime