(Bloomberg) — Morgan Stanley will cut back its world workforce by about 2% as Wall Avenue seeks to tame prices forward of a possible US recession.
The cuts quantity to roughly 1,600 of the workforce, based on an individual accustomed to the matter who requested to not be recognized discussing non-public data. Morgan Stanley had greater than 80,000 staff on the finish of the third quarter.
“You’ve obtained to keep in mind the speed of progress we’ve had in the previous few years,” Morgan Stanley Chief Govt Officer James Gorman mentioned because the financial institution reported earnings in October. “We’ve realized some issues throughout Covid about how we will function extra effectively. In order that’s one thing the administration workforce is engaged on between now and the tip of the 12 months.”
Goldman Sachs Group Inc. and Financial institution of America Corp. executives warned of hiring slowdowns on Tuesday, citing the unsure financial outlook. Goldman Chief Govt Officer David Solomon mentioned smaller bonuses and even potential layoffs ought to come as no shock amid a deal stoop whereas Financial institution of America CEO Brian Moynihan mentioned the lender is slowing hiring as fewer staff go away, in an try to handle headcount.
CNBC earlier reported the Morgan Stanley reductions.