NEW YORK CITY-A person familiar with the plan reports that Morgan Stanley has plans to trim its workforce by approximately 1,600 workers.
The Bloomberg News report states that the nation’s sixth largest US bank by assets has already notified some of its workers but has yet to publicly announce the job cuts that are expected to be instituted in coming weeks and will involve its investment bank and support staff.
The source, who asked not to be identified, says that about half the reductions will be at its U.S.-based operations, with the rest affecting its international personnel. A year ago, the firm stated it would eliminate 1,600 jobs and reduced its workforce by more than 4,000 through the first nine months of 2012 through layoffs and unit sales. Morgan Stanley CEO James Gorman has promised to reduce costs at the firm as return on equity has remained below its cost of capital. See Bloomberg News story.