According to insiders at the company, Morgan Stanley is gearing up to reduce its workforce by 3,000 employees. When excluding financial advisors and support staff that are immune to the cuts, this comes to about 5% of the company’s headcount.
Investors will keep in mind that this would be the second round of recent layoffs from Morgan Stanley. The company also cut around 2% of its workforce back in December. The cuts also come as inflation and interest rates continue to rise.
One thing to note is that these alleged job cuts would come after the company’s lackluster first-quarter earnings report. The company saw costs increase while revenue dropped during the quarter. Also, it’s not just MS stock that investors will want to watch as other banks have been suffering lately, per CNBC.
Morgan Stanley Layoffs Continue Trend
While this is the second batch of layoffs for Morgan Stanley, it might not be the last. Several companies have been cutting jobs recently as they prepare for a worsening economy. Bank stocks and tech stocks have been hit hard by this and it might even result in more layoffs in the future.
MS stock is down 1% as of Tuesday morning.
Investors can keep reading for more of the most recent stock market news!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.