Morgan Stanley is today saying that it will not lay off any brokers. The firm is responding to a Wall Street Journal story in today’s paper that says the firm is considering eliminating 1,000 brokers--7% of its brokerage force--as well as another 500 support staffers.
The Journal story cites an unnamed person familiar with the matter, and claims that the firm would not comment. The article says the firm wants to cut $1 billion in costs.
But Morgan Stanley is now saying no brokers will be let go and that the firm wants to increase its sales force.
Dow Jones, which publishes the Journal, is defending the original report. Dow Jones Newswires quotes Richard Tofel, a spokesperson for Dow Jones & Co., as saying, "The information in this morning's Wall Street Journal article came from a high-level executive at Morgan Stanley in a position to know."
Editor's note: For any comments regarding this article, or to suggest a story idea for RR Online or Registered Representative magazine, contact Editor in Chief Dan Jamieson at [email protected], Online Editor Rick Weinberg at [email protected], Online Managing Editor Cheryl Cooper at [email protected] or Senior Editor Michael Hayes at [email protected]