Morgan Stanley wants to get rid of 3000 jobs. It has been claimed that Morgan Stanley plans to lay off another 3,000 workers during the second quarter of this year.
A source close to the situation told Reuters that the bank cited the poor pace of deal-making in light of the challenging economic environment as the rationale for the second round of layoffs.
At the time of publication, FOX Business’ request for comment from Morgan Stanley had yet to be responded to.
Revenue from Morgan Stanley’s investment banking division fell 24% year over year, to $1.25 billion, in the company’s first fiscal quarter. Goldman Sachs saw a 26% drop in investment banking revenue for the quarter, while JPMorgan Chase saw a 19% decline.
After a record-breaking 2021, when bankers saw massive pay raises due to a surge in mergers and stock offerings, investment banking revenue plummeted the following year.
Last month, on an earnings call with shareholders, Morgan Stanley CEO James Gorman said, “Given the broader market uncertainty and the inflationary environment, expense management remains a priority.”
In December, the company announced that it would be laying off 2% of its workforce. After firing 500 employees in September, Goldman stated in the following month that it would cut as much as 8% of its workforce.
Joe Duran, head of personal financial management at Goldman, explained the firm’s decision to lay off 3,200 workers on “Varney & Co.” He stressed that Goldman always prioritizes the welfare of its clients and staff.
Bloomberg News first reported the newest round of layoffs at Morgan Stanley.