Thousands Of Job Losses Expected At 4 Other Big Firms

CNBC reports that Morgan Stanley is to start laying off another 1,500 staff any day now. The cuts are said likely to come from all business units except the brokerage.

The news agency says that insiders have confirmed that CEO John Mack is looking to slash around 10% of the firm's headcount this year (the firm currently employs around 46,000 staff). A Morgan Stanley spokesperson said: 'We are constantly evaluating business conditions to ensure we are right-sized, and we continue to do that'. The firm is thought to have already cut some 3,000 jobs globally since October. Mack is said to be hoping that this latest cull will be the last major downsizing this year. This phase of job cuts should be completed by the end of June.

CBC News reports that Morgan Stanley is, however, to build a $200m technology centre in Montreal which will house 500 staff supporting its global operations.

CNBC also reports that Lehman Brothers is also likely to add to its lay-off total in the coming few days. The firm is said to have already let around 4,900 staff go since last summer.

And as the smart money says that between 8,500 and 10,000 Bear Stearns jobs are likely to go over the coming months as the firm's 'merger' with JPMorgan takes its course, Financial News reports that, according to an unnamed source, some 1,500 JPMorgan jobs are also likely to be axed too because of the deal. There's some good news though, as Bloomberg reports that JPMorgan has offered 30 senior managing directors in the US roles in its investment banking unit. All Bear staff should know what their futures will look like by the end of the month.

Reuters reports that JPMorgan's $1bn Boston-based mutual fund servicing group is likely to add hundreds of employees to its payroll this year, as clients invest billions more with the bank. The business up, which has around $4.7 trillion under administration globally, expects to see assets rise some 40% this year.

The Wall Street Journal reports that Sergei Aleksashenko, the head of Merrill Lynch's Russian operations, has quit after less than 18 months. The newspaper said that the banker had left after falling out with senior managers over the way the unit was run. And Bloomberg reports that Merrill boss John Thain has hired former Goldman colleague Peter Kraus to run strategy and investments. Strauss will also be on the firm's management committee.

Finally, New York magazine recently ran a comprehensive interview with former Morgan Stanley co-president Zoe Cruz. Ms Cruz, 52, tells how she was shocked when firm CEO John Mack called her into his office and said: 'I've lost confidence in you. I want you to resign'. Looking to return to the financial markets in either a hedge fund or private equity firm, Cruz is said to have told friends that, although she takes responsibility for the $9bn in fixed income losses that Morgan Stanley sustained under her watch, she feels that she was the fall guy, and that Mack betrayed her.

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