SAN FRANCISCO: Global investment advisory firm Morgan Stanley has cut nearly 2 per cent of its global workforce or around 1,600 employees amid a global economic slowdown, media reported.
While CNBC first reported the layoffs, citing sources, Morgan Stanley CEO James Gordon recently warned that “some people are being let go.
The company has about 81,567 employees and the layoffs will touch “almost every corner of the global investment bank”.
The global investment bank had yet to comment on the report.
Morgan Stanley is following rival Goldman Sachs and other investment firms including Citigroup and Barclays in reducing their workforce.
The report noted, “Banks typically cut their most vulnerable employees 1 percent to 5 percent before paying bonuses, leaving more money for the remaining employees.”
The report states that Morgan Stanley has seen an increase in the number of employees in recent years.
From the first quarter of 2020 to the third quarter of this year, the number of employees of the bank has increased by 34 percent.
Not just Morgan Stanley, several other companies, such as Amazon, Twitter, PepsiCo, Adobe, Meta and Twitter have laid off employees amid global macroeconomic conditions.