Morgan Stanley (NYSE: MS) reported it is cutting roughly 2% of its workforce due to an uncertain global economic outlook, according to people with knowledge of the situation.
The job cuts at the investment bank, the world’s biggest equities trading firm and a leading mergers advisor, will hit technology and operations roles hardest, said the sources. New York-based Morgan Stanley had 60,532 employees as of Sept. 30.
In October, the bank posted third-quarter profit and revenue figures that beat analysts’ expectations. The company produced $10.1 billion in revenue, exceeding analysts’ average estimate by approximately $500 million.
During the post-financial crisis era marked by declining trading revenue, Wall Street firms often cut jobs toward the end of the year to avoid paying out bonuses. Morgan Stanley is the first known instance of this, but other firms will likely announce cuts as planning for 2020 continues.
Morgan Stanley shares have climbed 25% this year amid a broad rebound in bank stocks. They began Tuesday down 25 cents to $$49.34.
In November came word that the company had fired or placed on leave at least four traders over an alleged mismarking of securities, including forex options, that concealed losses of between $100 million and $140 million.
Sources said the bank's currency options desk has struggled this year amid a slump in the volatility that generates profits for traders.
Other recent incidents have pointed to weak internal controls at investment banks a decade on since the financial crisis.
