Morgan Stanley is set to slash headcounts worldwide in the next few weeks amid a slow growth in its dealmaking business in the light of increasing inflation and an economic slump, Reuters has reported.
The investment banking giant has already listed the names of employees, who might lose their jobs, in Asia Pacific, three people privy to the development told the publication.
Most of those employees are part of teams that look after business related to China, added two of the people.
The planned layoffs also include some employees from the bank’s capital markets units in Hong Kong and mainland China.
Majority of the rest of the cuts might cover other teams responsible for both onshore and offshore businesses in China.
In addition, the layoffs will impact Morgan Stanley’s technology investment banking arm, which employs more than 30 people in Asia Pacific.
The sources also noted that the layoffs in Asia Pacific will be more than the company’s annual natural departures in the region.
However, the bank is yet to take a final call on the extent of the job cuts.
Morgan Stanley will also carry out layoffs across the globe during the same time, the sources told the news agency.
The Reuters report also cited a fourth source as saying that the bank is yet to finalise the size or time schedule of any job cuts.
The cuts are not impending and it will leave the bank with a ‘low-single digit percentage’ of employees across the globe, this source added.
As per a company filing, Morgan Stanley had a workforce of 81,567 people worldwide at the end of the Q3 2022.