Morgan Stanley plans to cut 1,600 jobs.
The US investment bank Morgan Stanley plans to cut 1,600 jobs in the latest sign of retraction in Wall Street, targeting senior-level employees who take in the biggest paychecks.
The financial corporation will cut six percent of its institutional securities unit staff starting this week - targeting senior-level employees in all sectors - affecting the company’s traders, salespeople, bankers, and support staff, sources said on Wednesday.
The move comes as Morgan Stanley and other banks have reported low profits in their trading and investment banking businesses.
About half of the job cuts will target employees in the United States, with the other half occurring overseas.
Morgan Stanley's products include investment banking, asset management, commercial banking, prime and retail brokerage, and commodities. The recent job cuts come in addition to a six percent job cut of its workforce in 2012.
Morgan Stanley is also expected to reach a USD 1.5 billion settlement this week with federal regulators over botched foreclosure claims purchased during the subprime mortgage crisis.