According to reports, Morgan Stanley layoffs could occur again. According to recent estimates, the industry behemoth in investment banking may undertake more rounds of employment layoffs due to economic concerns.
This wave of Morgan Stanley job layoffs, according to a Bloomberg story, may affect approximately 3,000 workers as the corporation focuses its emphasis to spending as recession worries stall a resurgence in dealmaking. Senior corporate executives are apparently talking about these layoffs, which are expected to affect the whole staff by the end of this quarter.
According to the report, this wave of layoffs at Morgan Stanley would affect around 5% of the company’s overall staff, excluding financial advisors and those who assist them in the wealth management sector. However, Morgan Stanley’s banking and trading divisions might experience the greatest number of layoffs during this round of job cuts.
If carried out, this round of job cutbacks by Morgan Stanley would come only a few weeks after the investment banking tycoon reduced around 2% of its worldwide employees.
CEO James Gorman said that underwriting and mergers activity have been muted, and that he doesn’t see a return till the second half of 2023 or 2024, according to the publication’s article. Additionally, according to reports, a decline in dealmaking in Q1 caused Morgan Stanley’s profit to drop from a year earlier.
