Morgan Stanley recently reported a decline of 20% in profits to $2.8 billion in the first three months of 2023.
American multinational investment bank Morgan Stanley is reportedly planning to eliminate 3,000 more jobs globally by the end of the second quarter. Bloomberg, which was the first to report about the bankās latest layoffs, reportedĀ that the investment giantās second layoff in the last six months would impact roughly 5% of the staff excluding the wealth management division.
The layoff decision by the financial institution, which had more than 82,000 employees as of March end, would impact nearly 4% of Morgan Stanleyās overall workforce. According to a ReutersĀ report, slow dealmaking and a tough economic environment are promptingĀ Morgan StanleyĀ to reduce its headcount. The financial services giant had laid off around 1,600 employees in December, impacting about 2% of its workforce then.
The investment bank recently reported a decline of 20% in profits to $2.8 billion in the first three months of 2023 amid a slowdown in global mergers and acquisition advising. The companyās total revenue was down nearly 2% to $14.5 billion in the quarter ended March due to a decline in investment banking activity, ReutersĀ reported.
The cloud of uncertainty has been hovering over Wall Streetās banks amid rising interest rates, a slowdown in initial public offerings due to a grim global economic outlook, and the collapse ofĀ Silicon Valley Bank. Previously, Citigroup reportedly laid off 1% of its workforce in March, impacting over 2,000 employees. In February, JPMorgan was also reported to have laid off hundreds of mortgage employees. Another Wall Street investment giant Goldman Sachs eliminated 3,000 jobs in January after a tough year for dealmaking activity.
Not just the banking sector, the layoff wave has hit several other sectors including the tech sector. In the past, many tech companies including Mark Zuckerberg-ledĀ Meta, Sundar Pichai-ledĀ Alphabet, Elon Musk-ledĀ Twitter, Satya Nadella-ledĀ Microsoft, and Andy Jassy-ledĀ Amazon, among others, have laid off thousands of employees in an attempt to gear up for a global economic slowdown. Entertainment majorĀ Walt Disney, electric carmakerĀ Lucid, American ride-hailing companyĀ Lyft, job listing siteĀ Indeed, and more have also trimmed their workforce.