Morgan StanleyImage Credit source: File Photo
Morgan Stanley is planning to cut 3,000 jobs after reporting a decline in profits during the first three months. The decision comes at a time when the bank is facing a tough economic environment and a slowdown in dealmaking activity. The next round of layoffs will start in the second quarter. The company had cut 1,200 jobs in December 2022.
As per the report, after ending March with over 82,000 employees, the bank aims to cut staff by around 4 per cent this quarter. The US investment and financial services giant said in its latest earnings report that its profit fell 20 per cent in the first three months of this year amid a slowdown in mergers and acquisitions.
At the end of last year, the global financial institution laid off about 2 percent of its staff, or about 1,600 positions. Around 3,000 jobs are expected to be added to the new round of layoffs. News of further layoffs at Morgan Stanley followed the acquisition of First Republic by JPMorgan Chase, which resolved the fate of the last major bank caught in the recent turmoil. The sector still faces challenges from a weak economy and high interest rates.
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These companies have also laid off
Ever since the sinking Silicon Valley Bank ignited fears of widespread failures among mid-sized banks, the industry has been reeling under uncertainty. But despite First Republic’s April earnings report, it shows that the business remains in satisfactory condition. Let us tell you that Morgan Stanley is not the only investment banker to cut jobs in this recession. Financial service providers such as Goldman Sachs, Barclays, JP Morgan, Citigroup have also laid off thousands of employees in the recent recession.