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Morgan Stanley to Slash 1,500 Jobs
Will Come From Securities and Investment Management Units Will Be a Combination of Early Retirements and Layoffs
(NEW YORK) (AP) A month after reporting a steep decline in first quarter profits, Morgan Stanley Dean Witter & Co. said Tuesday it plans to eliminate 1,500 jobs.
The cuts will come from Morgan Stanley's securities and investment management units through a combination of early retirements and layoffs, said Judy Hitchen, a Morgan Stanley spokeswoman.
Most of the cuts will be U.S. jobs, though some positions in Europe and Asia will be eliminated. Hitchen declined to be more specific.
The company's brokers and workers in its Discover credit card division won't be affected. Earlier this month, Morgan Stanley denied a report in the Wall Street Journal that it was considering cutting 1,000 brokers.
The move by the New York-based brokerage follows similar actions by several competitors, including UBS Warburg, Merrill Lynch & Co., Goldman Sachs Group Inc., Bear Stearns Cos., Charles Schwab Corp. and Credit Suisse First Boston.
The firms' troubles were prompted by the steep stock market decline, which has cut brokerage fees, and sharply reduced revenue generated by arranging mergers and acquisition deals and helping companies issue new stock. Morgan Stanley's earnings dropped 30 percent for the first quarter compared to the same period a year earlier.
In a message to employees Tuesday, Morgan Stanley said the job cuts will allow the firm to more effectively ôserve our clients, capitalize on market opportunities and improve operating performance.''
Shares of Morgan Stanley rose 10 cents, to $63.90, in morning trading on the New York Stock Exchange.
-- K. (email@example.com), April 24, 2001