Money Matters - Simplified

Morgan Stanley to slash 1600 jobs

Morgan, which is struggling with declining revenue in both trading and banking businesses, hopes the layoff will cut its costs.

It's going to be a tough new year for many at Morgan Stanley. The Wall Street bank has disclosed plans to cut 1600 jobs in the first three months of the coming year.

A Morgan Stanley spokesperson told FOX Business, "As we conduct our year-end performance management process and evaluate the right size of the franchise for 2012, we anticipate the elimination of approximately 1,600 positions across the firm globally impacting all job levels."

The figure amounts to 2.6 percent of its some 62,000 workers in the Americas, Europe, Middle East and Asia.

The job cuts will include levels such as analyst, associate, vice president, executive director and managing director.

Morgan is not the only Wall Street firm to cut jobs. In fact, Citigroup has announced plans to layoff around 4,500 workers of its more than 260,000 global workforce in the next few months.

Cost-cutting effort
Morgan, which is struggling with declining revenue in both trading and banking businesses, hopes the layoffs will cut its costs.

Both Europe's debt crisis and economic slowdown in United States have adversely affected Morgan, as there has been a drastic fall in demand for trading and investment-banking services.

The jobs cuts are expected to reduce bank's compensation expense.

Layoffs across the sector
Morgan is not the only Wall Street firm to cut jobs. In fact, Citigroup has announced plans to layoff around 4,500 workers of its more than 260,000 global workforce in the next few months.

Even UBS has told investors that it plans to layoff around 2000 employees by 2016.

Further, Bank of America is hoping to dole out pink slips to roughly 30,000 employees in the next few years.

Goldman Sachs and Credit Suisse are also planning to cut jobs.