Morgan Stanley cut 1,500 jobs this week, Layman to follow
17 May 2008
Morgan Stanley, the second-largest investment bank in the US, will cut around 1,500 jobs this week across its investment banking, trading and asset management divisions, taking its total subprime-related job cuts to 4400.
Investment bank Lehman Brothers Holdings Inc is expected to start cutting jobs next week, as financial firms find the hangover of the subprime mortgage woes last longer than expected.
Morgan Stanley is planning a five per cent reduction of non-broker employees, mainly in the United States and Europe, sources familiar with the development said, adding some affected employees are yet to be notified.
With the latest round of cuts, Morgan Stanley would have slashed more than 4,400 mortgage, banking and trading jobs. Morgan Stanley had 47,050 employees at the end of February.
Business TV channel CNBC Television said Lehman Brothers Holdings Inc will begin cutting jobs starting next week.
Lehman could cut five per cent of its 28,000 jobs, it added. It was unclear if the planned layoffs reported by CNBC were in addition to those previously reported.
Wall Street firms have been cutting jobs as business slowed in various areas, including investment banking, residential mortgages and asset-backed securities.
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