Morgan Stanley to cut several hundred jobs in wealth unit

MORGAN Stanley is planning to get rid of a number of hundred jobs, the primary such transfer beneath chief govt officer Ted Pick.

The cuts will have an effect on lower than 1 per cent of workers within the wealth-management enterprise, which has about 40,000 employees and is the agency’s largest unit, in accordance with a supply with data of the matter.

A consultant for Morgan Stanley declined to remark.

Pick took the helm in January from James Gorman, who eradicated greater than 3,000 jobs final yr amid a renewed deal with bills and a stoop in charges from a dealmaking drought.

The financial institution’s shares have been the worst-performing amongst its greatest United States friends this yr, down about 10 per cent. Last month, the corporate warned that it’ll take longer to attain its profit-margin targets within the wealth unit and signalled that the below-target outcomes will final a short time longer.

The division, which obtained a lift for a lot of final yr from larger internet curiosity earnings, may see that profit begin to fade if the Federal Reserve begins reducing rates of interest later this yr.

Net new property within the unit remained beneath US$50 billion for a second straight quarter within the final three months of 2023. That tempo is wanting Morgan Stanley’s goal of greater than US$300 billion a yr.

During his first quarterly earnings name with analysts final month, the brand new CEO mentioned that the wealth section is the engine of the agency and the financial institution has been dedicated to rising it. The unit pulled in 48 per cent of complete income final yr, in contrast with 42.2 per cent on the funding financial institution.

The Wall Street Journal reported the job cuts earlier Wednesday. BLOOMBERG