Morgan Stanley share price drops after layoffs reported
The US investment bank is reportedly slashing 1,500 jobs globally, mostly from its tech and operations divisions.
There would be no holiday cheer for thousands of Morgan Stanley (NYSE: MS) employees this Christmas.
The US investment bank is set to reduce its global headcount by roughly two percent, Reuters has reported.
The job slashes will affect some 1,500 employees, mostly from the technology and operations teams, according to two sources close to the matter. The company is also prepared to take a charge of US$150 million to US$200 million in restructuring costs, they added.
Most of the people affected have already been informed, including several managing directors, as well as sales, trading, and research executives.
The layoff plans, the same sources said, have come on the back of an uncertain global economic outlook for 2020.
Still, they said the retrenchments are due more to redundancies than shrinking technology budgets.
Following the news, Morgan Stanley share price decreased 0.20%. Year-on-year, the investment firm’s stock value is up about 25% in 2019, making it the best performing year since 2016.
In October, the firm announced its best third quarter results for revenue in a decade. The company achieved US$10.1 billion in revenue, which surpassed industry analysts’ average predictions by around US$500 million.
Since its Q3 earnings were revealed, share price has risen nearly US$10 per share in the last eight weeks, based on IG data.
Morgan Stanley had a global headcount of 60,532 employees as of 30 September 2019.
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