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Morgan Stanley Axes 1,200 Jobs

By Erwin J. Shustak, Esq.  of Shustak Reynolds & Partners, P.C. posted on Wednesday, December 9, 2015.

Erwin J. Shustak

Erwin J. Shustak

Managing Partner

LocationSan Diego, California
New York, New York
Phone: (619) 696-9500 (Ext. 109)
(800) 496-5900 (Ext. 109)
Email[email protected]

Morgan Stanley announced it will eliminate 1,200 positions, amounting to 25% of the firm’s entire fixed income trading staff as well as other infrastructure and support positions. The layoffs are a result of the firm’s decision to cut back on its fixed income trading business and improve profitability. The firm will take a write down of $150 million this final quarter of the year.

The layoffs will affect 1,200 employees worldwide, including 470 traders and salespeople in its fixed income and commodities business. Morgan Stanley’s layoffs are endemic of the malaise that has affected the entire fixed income industry, which may be coming to the end of a long slide as interest rates may soon increase, returning potential profits to an industry sector that had been moribund as low interest rates became a way of life.

Morgan Stanley posted a 42% plunge in fixed income revenue during the third quarter of this year. The 1,200 job cuts are expected to provide an annual savings of over $500 million.

Shustak Reynolds & Partners, P.C. has extensive expertise and experience in the areas of securities, financial services and business law. The firm has successfully handled many cases for former and current Morgan Stanley brokers. For more information  contact Erwin J. Shustak, Esq, Managing Partner, at 619.696.9500 or via email at [email protected]

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