Investment banking giant Morgan Stanley is preparing to cut around 3,000 jobs, reported Bloomberg. This would roughly account to 5% of staff excluding financial advisers and personnel supporting them within the wealth management division. This will be second round of job cuts by the company within a six month period.
As per Bloomberg, this decision comes as the bank grapples with a tough economic environment and a slowdown in dealmaking activity. This round of layoff will take place in second quarter of 2023. The company had let go 1,200 employees in December 2022.
After the first round of layoff that slashed nearly 2% of the workforce, Morgan Stanley has a total of 82,000 employees. The decision to cut more jobs come as the banking giant reported a drop in profit during the first three months of year.
As per Economic Times, the US investment and financial services giant said in a recent earnings report that its profit dropped 20% in the first three months of this year amid a slowdown in mergers and acquisition advising.