LONDON, June 20 (Reuters) - Wall Street giant Morgan Stanley will trim its commodities unit by exiting sectors such as trading of agricultural products, freight as well as European power and gas following similar moves by rivals due to poor revenue outlook.
The move will result in departures of around 30 traders or just under a tenth of the workforce in its commodities division, one of the most powerful in the industry, a source familiar with the plan and a memorandum by the bank said.
"The commodities revenue pool available to firms in our sector has fallen by almost 50 percent from the peak years of 2007-2009," the memorandum said.
"Much of this decrease is due to cyclical factors, and we firmly believe that the cycle will turn again in our favor in the future," it added.
The source said the bank had no plans to exit global energy trading and North American power and gas trading.
It would beef up its North American fertilizer and shale gas related products while exiting agricultural products trading, physical dry freight business, Australian power business run from Singapore and reducing exposure to the EU power and gas trading by exiting some Eastern European markets.