Firms Announce Job Cuts Under Cover Of SG Trading Fiasco
The Wall Street Journal reports that Morgan Stanley is to laying-off around 1,000 staff, mainly in the firm's wealth-management unit. There are likely, however, to be some cuts in institutional securities. The newspaper quotes a Morgan Stanley spokesperson who confirmed that 'the firm is engaged in an ongoing process of assessing its personnel needs in light of overall market conditions, business priorities and individual performance'. CNBC quotes an unnamed person 'familiar' with the Morgan Stanley situation, who said 'we're battening down the hatches a little bit. It's not a significant deal' (not unless you're one of those getting fired, mate!).
Bloomberg reports that Credit Suisse is to eliminate 500 jobs in its investment banking division. The cuts, which will affect staff in equities and fixed income trading and origination, will be implemented worldwide. A spokesperson confirmed the headcount reduction, saying that 'due to market conditions and projected staffing levels required to meet client needs, we are reducing headcount by approximately 500 across the investment banking division'. These cuts include the 150 London job losses announced earlier in the week.
The news agency also reports that, according to an unnamed 'person familiar with the matter', Lehman Brothers is to cut 140 staff in fixed income trading, structured finance, securitization, commercial real estate and CDOs.
Reuters reports that Bank of America has closed its London commodities and energy trading desk as part of the latest restructure of its investment bank, which will see 650 staff lose their jobs.
Finally, we are hearing reports that low cost staff in low cost offshoring centers in India are worried that they, too, may become victims of Citi's latest round of job cuts. 400 London-based staff are also said to be among the 4,200 due for the chop in the latest round of company cuts.