Morgan Stanley has confirmed they plan to cut 1,600 job in the first quarter of 2012. Joining other banks across the financial service industry in job cuts due to the spiral down in the market and global uncertainty.
Morgan Stanley spokesperson said, “As we conduct our year-end performance management process and evaluate the right size of the franchise for 2012, we anticipate the elimination of approximately 1,600 positions across the firm globally impacting all job levels.”
Another spokesman for the New York company said Thursday, the cuts will include analyst, associate, vice president, executive director and managing director levels and will be completed in the first quarter. The bank had more than 62,000 employees at the end of September 2011, and the cuts amount to more than 2 percent of that total. It has been reported that none of the 17,300 financial advisers with Citigroup’s Smith Barney will be affected by the new year job cut by Morgan Stanley.
Many financial services have been trying to find a way to lower costs in this tough economy. Fox Business reports about the numerous banks cutting jobs, “Morgan Stanley is joining a growing list of financial-services companies to lower headcount, including Goldman Sachs (GS: 92.98, -0.27, -0.29%) and Citigroup (C: 26.25, +0.20, +0.77%). Last month Bank of America (BAC: 5.26, +0.02, +0.48%), the No. 2 U.S. bank by assets, said it plans to slash 30,000 jobs as it targets $5 billion in annual savings. European lenders Barclays (BCS: 10.58, -0.06, -0.56%) and HSBC (HBC: 37.27, +0.11, +0.30%), each of which have a large U.S. presence, have also disclosed job cuts.”
It’s a tough economy for financial service companies as SF Gate reports, “Financial firms globally have disclosed plans to eliminate more than 200,000 jobs this year in response to market turmoil, economic weakness and fallout from Europe’s sovereign debt crisis. Citigroup Inc., the third-biggest U.S. bank, told regulators this week it may dismiss 413 employees in New York City as the firm starts eliminating 4,500 jobs.
Morgan Stanley, the sixth-biggest U.S. bank by assets and owner of the world’s largest brokerage, advanced 2.3 percent to $15.41 at 10:08 a.m. in New York trading.”