Morgan Stanley Layoffs: Investment Banking Company to Cut 7% Jobs in Asia-Pacific Region Amid Worsening Economic Condition
Morgan Stanley is looking to lay off seven per cent of its Asia-Pacific investment bank workfoce with China to be the worst hit amid worsening economic conditions. The global investment bank may reportedly communicate to almost 40 affected bankers in this week itself, especially those in the capital markets unit.
Delhi, May 18: Morgan Stanley is looking to lay off seven per cent of its Asia-Pacific investment bank workfoce with China to be the worst hit amid worsening economic conditions. The global investment bank may reportedly communicate to almost 40 affected bankers in this week itself, especially those in the capital markets unit.
Business Today reported that the exact number of employees to be laid off by the bank is still not clear. The cuts are part of Morgan Stanley’s plan to reduce about 3,000 jobs globally by the end of this quarter. Morgan Stanley Layoffs: Top Brokerage Firm To Cut 3,000 Jobs in Second Round Amid Continuing Global Meltdown.
The report further says that official communication on this round of Morgan Stanley layoffs may happen as soon as this week.
Morgan Stanley has employed a bigger China team in Hong Kong than most of its rivals, making it vulnerable as deal activity slows as the relationship between US and China is gradually souring. Deloitte, Disney, Apple and More: List of Companies Planning to Layoff Thousands of Employees in 2023.
The layoffs are primarily due to a global economic downturn and to reduce expenses.
This comes after the company had earlier this month announced that it will hand over pink slips to at least 3,000 workers globally, amounting to almost 4 per cent of its workforce. Morgan Stanley CEO James Gorman had said in December 2022 that the bank would make “modest” job cuts worldwide without giving an exact number. As per international media reports, at the end of March, Morgan Stanley had more than 82,000 employees.
In the first quarter, Morgan Stanley’s profit fell from a year earlier, dragged down by a dropoff in dealmaking, with a 32% decline in its merger advisory and 22% slump in its equity-underwriting business.
The development comes after large banks such as Citigroup and Bank of America have also slashed a few hundred positions each in recent times, claiming that this will position them well when a resurgence in deals occurs.
(The above story first appeared on LatestLY on May 18, 2023 08:52 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).