It’s becoming less fun by the day to work at Morgan Stanley (NYSE:MS). First came word of smaller bonuses for Morgan Stanley employees, with a $125,000 cap (where do we sign up?). Plus, the top brass, including Chief Executive Officer James Gorman, won’t get any immediate cash and will defer their compensation.
Now, Fox Business News is reporting another layer of insult: Even after the recent layoff of 1,600 employees, more may be let go in the near future. The culprit would likely be diminished investment banking and trading revenue. Morgan Stanley reports its latest quarterly earnings on Thursday, and companies often use earnings reports as a springboard for announcements about reorganizations or job reductions.
While the last round was hardly a massive number of layoffs for a firm the size of Morgan Stanley, the financial sector appears to be picking up in 2012 where it left off last year, with downsizings all over. Given the drop in investment banking income up and down Wall Street. Goldman Sachs (NYSE:GS), which reported earnings this morning, laid off another 900 employees during the fourth quarter.
All told, the big banks — including Citigroup (NYSE:C) and Bank of America (NYSE:BAC) — eliminated some 60,000 jobs last year. Considering the headwinds this group is again facing in 2012, the bonuses will likely keep shrinking and the layoffs will keep coming.