New York, United States–Morgan Stanley is planning to cut more jobs after reporting a drop in profit during the first three months of the year, US media reported on Monday.
The bank aims to trim its headcount nearly 4 percent this quarter after ending March with more than 82,000 employees, according to the reports.
The US investment and financial services giant said in a recent earnings report that its profit dropped 20 percent in the first three months of this year amid a slowdown in mergers and acquisition advising.
The global financial institution at the end of last year trimmed about 2 percent of its staff or some 1,600 positions, CNBC reported at the time.
The new round of cuts is expected to involve about 3,000 jobs.
Word of more layoffs at Morgan Stanley came as JPMorgan Chase’s takeover of First Republic resolved the fate of the last major bank caught up in recent upheaval.
The sector still faces a weakening economy and challenges from higher interest rates.
Last month, Morgan Stanley finance chief Sharon Yeshaya had said that “expense management” was a priority given the broader market uncertainty and elevated inflation.
Investment banks have been hurt by a slump in dealmaking caused by the Federal Reserve’s war on inflation and the banking crisis.
Wall Street’s investment banks have suffered from a downturn in deals as investors grew more cautious about volatile markets and rapidly rising interest rates.
Initial public offerings have also come to a virtual standstill as startups put off market debuts until investor sentiment improves.
The layoffs will take place across the company, except Morgan Stanley’s wealth management division that includes financial advisers, the source said. The company employed about 82,500 people as of the end of last year.
Ever since the March collapse of Silicon Valley Bank ignited fears of widespread failures among midsize banks, the industry has been operating under a cloud of uncertainty.
But notwithstanding First Republic, April earnings reports showed the industry is in passable condition.
