Morgan Stanley layoffs may reportedly strike again. As per latest reports, the investment banking giant may indulge in another round of job cuts amid recession fears.
According to a Bloomberg report, this round of Morgan Stanley job cuts may impact around 3,000 employees as the company shifts its focus on expenses as recession fears delay a rebound in dealmaking. Senior managers of the company are also reportedly discussing these layoffs that would impact the global workforce by the end of this quarter.
The report adds that this round of Morgan Stanley layoffs would amount to roughly 5 per cent of the global workforce, excluding financial advisers and personnel supporting them within the wealth management division. However, the banking and trading divisions may see maximum layoffs in this round of job cuts at Morgan Stanley.
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This round of Morgan Stanley layoffs, if executed, would be the second round of job cuts weeks after the investment banking mogul trimmed about 2 per cent of its global workforce.
The publication’s report adds that chief executive officer (CEO) James Gorman said that underwriting and mergers activity has been subdued and that he doesn’t expect a rebound before the second half of 2023 or 2024. In addition to this, in Q1, Morgan Stanley’s profit reportedly fell from a year earlier due to a slump in dealmaking.
