Is
Morgan Stanley(NYSE:MS) going in for large-scale pruning?
The
investment bank is considering closing some of its brokerage offices, sacking
support staff and asking branch managers to bring in revenues by doubling up as
advisers to combat the recession, Reuters
reported on Tuesday citing unidentified sources.
How
Should This Layoff The MS’ Shares, Get Free Trend
Analysis
"Morgan
Stanley, which controls the Morgan Stanley Smith Barney venture owned jointly
with Citigroup, last week reduced the number of regions to 12 from 16,
eliminating four manager jobs. Only about eight months earlier the firm had
consolidated its regional manager ranks from 19," the report said.
All
these changes are geared towards cutting costs and squeezing more revenues from
its existing employees. More such measures are expected to be announced in the
forthcoming weeks, the report said.
It
said that the bank is planning a 10 percent cut in its 120-branch complexes
that house a group of branch offices in a city or region.
Morgan
Stanley is eager to slash spending in the brokerage division after all of its
nearly 17,000 brokers were transferred last month onto a common technology
platform.
Redundant
offices from Morgan Stanley's and Smith Barney's nationwide networks will be
closed, and support jobs will be eliminated, said the report.
It
was not immediately clear how many jobs are in jeopardy, although as many as
100 offices could be closed, Reuters quoted one of the sources as saying.
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Morgan
Stanley has told investors its wealth management business, weighed down by
expensive merger integration and a tough market environment, can deliver
mid-teens pre-tax profit margins. The margin improved to 12 percent in the
second quarter after dipping as low as 8 percent.
Shares
of MS are now up 0.83% to $ 14.62.
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