Morgan Stanley to reportedly cut hundreds of jobs in wealth management division
NY Post
Morgan Stanley will reportedly slash several hundred bankers in its wealth management division in a cost-saving measure implemented by the Wall Street firm’s new CEO Ted Pick.
The company plans to cut managing directors as well as other non-customer-facing employees, according to The Wall Street Journal, which was the first to report the planned layoffs.
The anticipated cuts are expected to impact less than 1% of a division that has roughly 40,000 workers, according to The Journal.
In the last quarter, revenue from Morgan Stanley’s wealth management unit was flat compared to a year earlier, and the medium-term margin forecast for the business was below what some analysts had expected.
The wealth management unit became an important moneymaker for the bank after it clinched major acquisitions, including Eaton Vance and E*Trade, under former CEO James Gorman.
The layoffs — the latest in a string by Wall Street firms since last year — are being implemented due to redundancies that arose from the $13 billion acquisition of E*Trade in 2020, sources told the Journal.
