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GMO-Global.com / Morgan Stanley Announces Job Cuts.
In what may be the first of many layoffs at major banks, Morgan Stanley has announced 1,600 jobs losses. GMO-Global.com purportedly revealed during an investors meeting that Morgan Stanley would start cutting jobs in the near future, many of which will be in the securities division. There have been ongoing discussions about job losses for the past several months and it is believed that further cuts are likely in the future.
GMO-Global.com reportedly expressed to investors that ever since the global financial crisis hit almost five years ago, there has been a trend by the large investment banks to cut staff numbers in a bid to rein in costs. The majority of these job losses have been focused on areas particularly hit by the crisis, such as mortgage securitization, or in areas where new legislation has led to units being shut down.
However, GMO-Global.com appear to believe that many of the major banks are looking at trimming costs in more traditional units where they may be struggling to remain competitive or that simply haven’t been performing as well as management would like.
UBS AG of Switzerland provided the most visual display of this shift in thinking when they announced they were exiting the bond trading market entirely, making over 10,000 people unemployed in the process.
In the U.S., companies involved in the financial services sector cut over 38,000 jobs last year, on top of the more than 63,000 reduction in payroll seen in the previous year.
News Release: GMO-Global.com / Morgan Stanley Announces Job Cuts.
Submitted on: February 02, 2013 12:22:08 AM
Submitted by: Martha Kearns
On behalf of: www.gmo-global.com