Morgan Stanley to cut 3,000 more jobs in second round of layoffs
The layoffs came after Morgan Stanley CEO James Gordon recently warned that "some people are going to be let go."
The layoffs will reportedly take place across the company, except at the bank's wealth management division.
The decision comes as Morgan Stanley grapples with a tough economic environment and a slowdown in dealmaking activity.
The US investment and financial services giant said in a recent earnings report that its profit dropped 20 percent in the first three months of this year amid a slowdown in mergers and acquisition advising.
The job cuts would mark the second round of layoffs in the past six months at the bank.
The next round of layoffs will take place in the second quarter, Bloomberg News reported on Tuesday. The company had cut 1,200 jobs in December 2022.
It is worth noting that the bank's revenues have been impacted by declining fees from its investment banking unit, which in turn led to a nearly 2 percent drop in total revenue to $14.5 billion in the most recent quarter. Last month, Morgan Stanley's Chief Financial Officer, Sharon Yeshaya, emphasized the importance of expense management in light of the prevailing market uncertainty and rising inflation.
Morgan Stanley, which employs about 82,000 people, did not comment on the report.
Last month, Morgan Stanley reported weak profit, revenues, and assets under management in its first quarter, noting that the businesses navigated a volatile market environment. Net income applicable to shareholders for the first quarter fell 20 percent to $2.84 billion from last year's $3.54 billion.
Goldman Sachs eliminated about 3,200 jobs in January in one of its biggest cuts ever. Even Just a couple of weeks ago Deloitte joined the Layoffs Rush by laying off its more than 1,200 Employees
Morgan Stanley followed rival Goldman Sachs and other investment firms including Citigroup and Barclays in reducing their workforce.
Word of more layoffs at Morgan Stanley came as JPMorgan Chase's takeover of First Republic resolved the fate of the last major bank caught up in recent upheaval.
Ever since the March collapse of Silicon Valley Bank ignited fears of widespread failures among midsize banks, the industry has been operating under a cloud of uncertainty.