It looks like more bad news is coming to the finical sector in general, and to the workers of Morgan Stanley specifically. You may recall in December that the company laid of 1,600 workers. For those you who do not recall here is an excerpt from our earlier coverage :
“It looks like things are only going to get worse. Morgan Stanley, an investment bank of some note, released plans today that will entail the loss of a significant number of jobs. The total loss is looking to be about 1,600 workers, and at the current moment no one is really safe. The company has yet to put out a lot of details about who exactly will be out of a job. The company did say that the losses would come from operations around the world, which is good news for workers in the New York headquarters, who hopefully will not bear the brunt of the blow this time.”
It looks like even after the sizeable cuts that were made in the recent past the company is getting ready to get rid of even more jobs. The management of the company has made their intentions to let go of more staff known to the public. They have already begun to warn the staff that there were more job cuts to come before everything was said and done. The company is attributing these potential future layoffs to a vague mix of business conditions and the potential impact of finical reforms.
Unlike other cuts in the past this one is slated to directly affect the traders themselves, accord to analysts. One analyst, Dick Bove, told a reporter for Fox Business News the following about the situation that the traders are in, “Traders are basically walking around with a bulls-eye on their backs. The positions that I would least like to have in this environment is a trader of any product, an analyst, junior corporate finance people or any type of middle manager.”
Morgan Stanly is not, of course, the only bank looking to cut back on their staff in order to make ends meet. In our earlier coverage we looked at the cuts of 3,500 jobs. Here is an excerpt:
“Today’s cuts are coming from the Royal Bank of Scotland PLC. For those of you who are not familiar with it the Royal Bank of Scotland PLC is a bank that is mostly owned by the U.K. government. The bank has unveiled a new plan for restructuring this week that will come with some significant cuts.
The plan is designed, as you may have guessed if you follow banking news, to cut back significantly on the investment banking operations by getting rid of jobs. They are not the first bank in Europe, which has decided to do so with the volatility of the current market. In this case the bank has decided to trim back by about 3,500 jobs over the next three years. This is added to the 2,000 job cuts that were announced last year. By the end of the restructuring the bank is expected to have cut back about one third of its overall staff. Since the bank employs about 19,000 people this will be a significant loss of jobs.
Other cuts are expected to be eliminated from other branches. Another 1,260 jobs are going to be cut. Those numbers include a loss of 950 jobs from Ulster Bank, 270 banks from the U.K. corporate bank and another 40 workers in the wealth management department, according to sources close to the bank.”Morgan Stanley to Cut More Jobs by Harrison Barnes