Morgan Stanley joins layoffs Rush

Morgan Stanley has reportedly sacked about 2 per cent of its workforce is letting go of nearly 1,600 employees of the company's 81,567 strong workforce around the world, according to reports.

As per a Reuters report, Morgan Stanley has sacked about 2 per cent of its workforce. While the news of Morgan Stanley layoffs was reported by CNBC

Annual “cullings” of low-performing employees were common practice on Wall Street prior to the pandemic, and they appear to be making a comeback, with Goldman Sachs, Citigroup and Barclays all recently reducing headcounts. Wall Street bonuses are expected to shrink this year as well.

Interestingly, these layoffs at Morgan Stanley follow workforce reductions at Goldman Sachs Group Inc., and Citigroup Inc., as per the report. It adds that as per a September 30 quarterly filing, the bank had more than 81,000 employees worldwide.

However, as per Chief Executive Officer James Gorman, as cited in the report, the company is making “modest job cuts worldwide.”

While the exact numbers of job cuts at Morgan Stanley have still not been confirmed by the company, the report has mentioned that the financial advisers in the bank’s wealth management division are not being let go.

Morgan Stanley layoffs come as a big surprise for many as till now most eyes were mainly on tech and media layoffs. Since the global economic downturn is expected to impact many sectors, more layoffs are expected in the coming days.

Apart from media and tech companies, even PepsiCo has reportedly announced some layoffs due to mounting economic pressures.

While financial advisers in Morgan Stanley's wealth management division are not being let go, there will be job cuts in the unit, the source said.

Wealth management accounted for 47% of the bank's revenue in the third quarter.