Global investment bank Morgan Stanley is planning its second round of job cuts in six months amid the worsening economic outlook and lack of deals.
Morgan Stanley plans to eliminate approximately 3,000 jobs in the second quarter of the ongoing financial year, reported news agency Reuters.
A source quoted in the news agency’s report said slow dealmaking and a tough economic environment are prompting the investment bank to look at its headcount.
This comes after another quarter in which fees from the investment banking unit fell, dragging total revenue down nearly 2 per cent to $14.5 billion.
Morgan Stanley chief Sharon Yeshaya said last month that “expense management” was a priority given the broader market uncertainty and elevated inflation.
It may be noted that Wall Street’s investment banks have suffered from a downturn in deals as investors grew more cautious about volatile markets and rapidly rising interest rates, which have already hurt several US banks and led to the failure of three prominent lenders.
Meanwhile, initial public offerings have also come to a standstill as start-ups have shelved plans to get listed, at least till some sort of improvement in investor sentiments.