Sources inside investment bank Morgan Stanley (NYSE:MS) are hinting that another round of staff cuts is coming.
Up to 1,600 jobs could be lost, with most coming from the firm’s investment bank and support staff, Bloomberg reports. The number would be equal to about 6% of the bank’s institutional securities group.
Such cuts would be in line with Morgan Stanley CEO James Gorman’s strategy of lowering costs. Morgan Stanley has seen its return on investment drop below its cost of capital over the last few years, and the firm has already confirmed a plan to reduce costs by $1.4 billion annually. MS cut 4,200 jobs from January through September of 2012.
Half of the latest rumored reductions would come in the U.S. at all levels of the company. The report also says some employees have already been notified that they’ll be cut.