Morgan Stanley denies Fox layoff report

NEW YORK Thu Jul 14, 2011 12:22pm IST

The exterior of the world headquarters for Morgan Stanley & Co. Incorporated is seen in New York, May 19, 2008. REUTERS/Lucas Jackson/Files

The exterior of the world headquarters for Morgan Stanley & Co. Incorporated is seen in New York, May 19, 2008.

Credit: Reuters/Lucas Jackson/Files

Related Topics

Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

NEW YORK (Reuters) - Morgan Stanley might lay off more workers than the few hundred underperforming financial advisers it previously said were at risk of being fired, according to Fox Business Network.

The news network reported on Wednesday that Morgan Stanley could cut "possibly thousands of jobs," citing a source with direct knowledge of the matter. A company spokeswoman dismissed the report.

"We are constantly evaluating the market conditions to ensure we are right sized," Morgan Stanley spokeswoman Mary Claire Delaney wrote in an e-mailed statement. "We have said we currently have no plans for a major (reduction in workforce) other than 300 or so underperforming FAs, and that remains the case."

Banks with big Wall Street trading operations have been scrutinizing their staffing levels to cut costs in a weak trading environment. Morgan Stanley has been building out its fixed-income division in an effort to gain market share that had contracted in the days leading up to the financial crisis.

Morgan Stanley, the only major Wall Street bank that books more than 40 percent of its revenue from retail brokerage, had 62,494 employees as of March 31.

Its wealth management area burgeoned in 2009 to more than 17,000 advisers when James Gorman, now chief executive of the firm and former head of Merrill Lynch's retail brokerage division, arranged for a controlling interest in Citigroup's Smith Barney business.

Morgan Stanley laid off about 300 financial advisers in the first quarter of 2011.

Chief Financial Officer Ruth Porat recently said it may bring wealth management staffing levels down further as the bank integrates Smith Barney and cuts overlap.

Fox Business Network report did not specify what businesses Morgan Stanley was reportedly studying for layoffs.

(Reporting by Lauren Tara LaCapra; edited by Jed Horowitz)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Monsoon Forecast

Monsoon Forecast

South Asia monsoon seen below-average to average in 2014 - WMO.  Full Article 

Solar Dispute

Solar Dispute

Green groups urge U.S. to drop solar trade case against India.  Full Article 

Oil Imports

Oil Imports

India to make May-July oil payments to Iran - sources.  Full Article 

Facebook Earnings

Facebook Earnings

Facebook Q1 revenue grows 72 percent on rising mobile ads.  Full Article 

DLF Shares

DLF Shares

DLF slides 3 percent, underperforms rivals.  Full Article 

Rice Exports

Rice Exports

India may cede top rice exporter spot under Southeast Asian price onslaught.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage