Morgan Stanley is reportedly planning to cut 3,000 jobs by the end of Q2 2023 due to a decrease in deal making, leading to a drop in profits.
Facts
- Morgan Stanley is planning to cut 3,000 jobs across its global workforce, with 5% of staff to be affected.
- A 32% decline in its merger advisory arm and a 22% drop in its equity underwriting business led to a decrease in profits in Q1 2023 compared to last year.
- The banking and trading arm of the firm is expected to bear the brunt of the cuts due to fewer M&As, a reduction in capital raises, interest rate hikes, and regional banking instability.
- Bloomberg predicts that Morgan Stanley’s revenue from banking fees will match last year’s, which was around half the $10.3 billion generated in 2021.
- This is the second round of layoffs in the last six months, with the firm having let go of around 2% of staff last December.
