Morgan Stanley is firing 950 brokers, according to the various sources.
The firm refused comment, but a source familiar with the situation confirmed that the number is accurate.
Overall, the firm is axing 2,200 employees, about four percent of its workforce, sources say.
According to sources, the firm is not considering the reduction of the broker workforce as layoffs, but rather “getting rid of chronic underperformers.”
Morgan Stanley claims the job cuts in the brokerage unit is not “an economic exercise to save money.” According to the firm, it would rather spend resources to help its best producing brokers rather than supporting low producing reps.
“I think it’s terrible situation,” says a broker whose branch lost several producers in the job cuts. “There are some real good people who were let go. Granted, their numbers aren’t very high, but in my opinion the company isn’t helping them enough. Some of them could wind up being top producers down the road, but [the firm] isn’t willing to spend the money or the time to train them better or give them more resources.”