Morgan Stanley is set to lay off approximately 2,000 employees later this month, marking the first significant workforce reduction under the leadership of CEO Ted Pick. This decision comes as part of a broader strategy to control costs while minimizing employee turnover.
According to informed sources, the layoffs will impact various divisions within the bank, excluding about 15,000 financial advisors. The plan was reportedly devised before recent market fluctuations and aims to address both performance-related issues and changes in employee work locations. Additionally, a small portion of the layoffs is attributed to the impact of artificial intelligence and automation within the company, which is expected to drive a higher percentage of workforce reductions in the coming years.
Currently, Morgan Stanley employs around 80,000 people. The bank, headquartered in New York, has not commented on the impending layoffs. Despite these challenges, Ted Pick, who will officially take over as CEO in early 2024 and is also serving as chairman, largely adheres to the strategies set by his predecessor, James Gorman.
So far this year, Morgan Stanley's stock price has declined by 6%, making it one of the poorest performers among major U.S. banks.
