Morgan Stanley laying off hundreds in wealth management unit, source says

Investment banking giant Morgan Stanley (MS.N), opens new tab is planning to cut hundreds of jobs in its wealth management unit, according to a person familiar with the matter, the latest in a string of layoffs that Wall Street firms have undertaken since last year.

The cuts will impact less than 1% of the division’s employees, the person said, requesting anonymity.

While hopes of a soft landing for the economy have grown in recent months, companies are still looking to trim costs amid uncertainty around the trajectory of interest rate cuts by the U.S. Federal Reserve.

In the last quarter, revenue from Morgan Stanley’s wealth management unit was flat compared to a year earlier, and the medium-term margin forecast for the business was below what some analysts had expected.


continue reading »