UPDATE: Morgan Stanley is laying off 1,000 people, primarily in tech, operations and support roles, according to the bank. Sources familiar with the situation said these jobs would be concentrated primarily in the wealth management, asset management and corporate divisions.
"The firm is engaged in an ongoing process of assessing its personnel needs in light of overall market conditions, business priorities and individual performance," a Morgan spokesman said. The layoffs "will involve headcount reductions in some areas, and additions in others."
Sources close to the bank said that the firm has no plans to cut advisor jobs, and that, in fact, the firm will continue to grow in 2008. Considering Morgan has 500 plus offices, the impact on individual offices will be minimal, the source said.
Still, it can’t be welcome news for the firm’s financial advisors, whose wealth management unit was the bright spot in an otherwise dismal earnings season in the second half of last year. In Registered Rep.’s annual broker report card survey, Morgan Stanley advisors gave their firm the lowest score of any firm in the category of support last year at 6.8. Sales support and quality of operations also received the lowest scores of any firm. What exactly will these support job cuts mean for advisors? The firm’s was not able to comment further on the topic, and advisors couldn’t be reached by phone Thursday night.
The cuts represent a 2 percent reduction of Morgan Stanley’s global work force.