Morgan Stanley (MS) is reportedly planning to trim its wealth management unit by axing hundreds of jobs. An anonymous source indicated that these layoffs would affect less than 1% of the division’s workforce. This action does, however, spotlight the ongoing pattern of job cuts since the start of the year.
More job cuts as Morgan Stanley downsizes wealth management division
Last week, LeapRate reported on job cuts in the finance and tech sectors. Based on Challenger, Gray & Christmas information, US-based layoffs in January increased by 136% compared to December 2023. Challenger Report data shows that the finance sector axed 23,238 jobs. This report stated:
With the exception of last January’s total, this is the highest number of job cuts announced in January since January 2009, when 241,749 cuts were announced in the first month of that year.
On the back of recent market performances, many pegged their hopes on an upsurge in the economy. Despite this optimism, finance companies, such as Morgan Stanley, remain careful and cut costs where they can. Analysts blame part of this wariness on the US Federal Reserve’s hesitance to cut interest rates.
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According to Reuters, the Morgan Stanley wealth management division did not increase its year-on-year revenue in leaps and bounds, and medium-term forecasts were bleak. After some prominent acquisitions, such as the Eaton Vance and E-Trade takeovers, the unit became a money-spinner.
These rumoured job cuts would be the first under new Morgan Stanley CEO Ted Pick. No comments were forthcoming from the bank.
