Last week's cuts are still a' coming.
"Ax fell in MS fixed income today, NY and elsewhere. People in HK were hammered, all levels though mainly senior."
The House of Gorman will be saying good-bye to a few thousand Little Jims before year-end. Chairman and Chief Executive James Gorman said the firm's work force at year-end will fall 7% from 2011, reflecting previously announced layoffs as well as the firm's efforts in applying "a high bar for replacing attrition." The forecast implies a reduction of more than 4,000 jobs from the firm's global headcount of 61,899 at Dec. 31. Last winter, Morgan Stanley announced 1,600 job cuts spread across its businesses, which was its largest such cutback since late 2008 and early 2009. The firm completed roughly 4% to 5% of those cuts in January and will complete an additional 2% to 3% by the end of 2012, a spokeswoman said. Morgan Stanley Expects 7& Cut In Its Workforce [WSJ]
The House of Gorman is said to be in the process of letting some employees down easy. Morgan Stanley will this week complete a round of job cuts that will ultimately lead to the company shedding 100 sales and trading staff, underscoring what is expected to prove a dismal second quarter for Wall Street banks. The cuts are across Europe, the Middle East and Asia, according to people familiar with the New York-based bank’s plans. The bank has so far laid off about two-thirds of its original 100-person target, leaving some 33 people to go this week. Morgan Stanle Said To Shed Staff As Deals Fall [FT]
Employees within fixed income may need to find room at another inn. People inside Morgan Stanley are bracing for layoffs in the fixed income department. Sources inside Morgan Stanley say people within the fixed income business are expecting a dramatic downsizing of that business. They are not thinking about a total exit, maybe exiting certain parts of it, spinning those off if they can, but clearly a radical downsizing. MS Planning Layoffs [FBN]
Morgan Stanley's roadmap to the future involves fewer humans, more machines. In a move to repair its flagging bond-trading business, Morgan Stanley is scrambling to replace some of its well-paid bond traders with computers. The New York company is hiring programmers and technology specialists to help it trade bonds electronically and handle client orders in the hope of exploiting an expected shift in the way bonds and other fixed income products are traded. While the effort represents only a part of what the firm is doing to boost low returns in the business, the shift already has reduced the ranks of interest-rate and foreign-exchange traders on some desks by 10% to 20%. Morgan Stanley's head of interest-rate trading, Glenn Hadden, has told colleagues in recent months and that the trading floor of the future will surround a few traders with the hum of powerful machines. Man vs. Machine At Morgan Stanley (WSJ)