Saturday July 21, 2012
Morgan plans further staff cuts on weak outlook
NEW YORK: Morgan Stanley became the latest bank to announce more layoffs to shrink expenses as Wall Street prepares for an extended period of weak global economic growth and low trading and deal-making volumes.
The investment bank, which posted a sharp drop in second-quarter revenue, expected its payroll to decline by about another 1,000 workers this year to meet a broader target of reducing staff levels by 7% from December 2011 levels, chief executive James Gorman said.
Morgan Stanley is one of several big banks to outline further belt-tightening measures this week when reporting quarterly results. The industry is facing increasing pressure from shareholders to boost profitability as the European debt crisis, companies’ reluctance to issue debt and equity, and slow stock and bond trading weigh on revenue. – Reuters