By: Ken Chase
Estimated reading time: 2 minutes
U.S. financial firm Morgan Stanley eliminated about 1,600 of its more than 81,000 employees on Tuesday, a roughly 2% reduction in its workforce. According to reports, the cuts were broad-based and impacted nearly every area of the company except for the bank’s financial advisors.
Last week, the company’s CEO had signaled that some modest cuts were coming but had not offered specifics about when they would occur or how many jobs would be impacted. Like other U.S. banks, Morgan Stanley had paused its annual “culling” of underperforming employees during the Covid-19 pandemic. In reinstating the practice, the bank joins rival firms like Citigroup and Goldman Sachs.
Reports suggest that Morgan Stanley has seen a 34% increase in its workforce since the early days of the pandemic. CEO James Gorman had offered some insight into management’s view on productivity during Morgan Stanley’s October earnings call, noting that his team had learned how to operate more efficiently during the Covid pandemic.
As noted, Morgan Stanley is just the latest firm to eliminate jobs. Firms like JPMorgan Chase, Citi, and Wells Fargo have all made reductions in their workforces, largely focused on jobs related to the slumping mortgage lending sector. Barclays also cut around 200 jobs last month, while embattled Credit Suisse revealed plans to cut around 2,700 employees.