Morgan Stanley To Cut Hundreds Of Jobs In Wealth Management As Growth Slows: Report
Portfolio Pulse from Michael Cohen
Morgan Stanley (NYSE:MS) is planning to cut hundreds of jobs in its wealth management division, as part of cost-cutting measures by new CEO Ted Pick due to a slowdown in growth. The layoffs will target a mix of roles, including managing directors and non-client-facing staff. This move comes after the firm's major acquisitions, including E*Trade, and as the wealth management division, which manages around $5 trillion in assets and contributes to nearly half of Morgan Stanley's revenue, experiences stagnant growth and a decrease in net new assets.
February 14, 2024 | 9:24 pm
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Morgan Stanley is set to reduce its workforce in the wealth management sector due to a slowdown in growth, affecting its key revenue and profit source.
The job cuts at Morgan Stanley's wealth management division signal a strategic shift to address slowing growth and stagnant revenues in a key segment of the company's operations. This move, particularly in a division that contributes significantly to the firm's revenue, could lead to short-term negative sentiment among investors, impacting the stock price negatively. The importance of this news is high due to the division's substantial contribution to Morgan Stanley's overall revenue and the fact that it manages around $5 trillion in assets.
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