Morgan Stanley is planning to cut about 30 to 35 jobs, or about 10% of its workforce, in the commodities unit.
The layoffs come as the securities firm plans to scale back certain international commodities businesses in the wake of new regulations and capital costs.
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The bank will shut businesses including agricultural products and dry freight, according to an internal memo from Colin Bryce and Simon Greenshields, co-heads of the unit.
In the memo, the executives said the firm plans to close several businesses including its Australian power business. The firm will also reduce its footprint in European Union power and gas by exiting some European markets.
Last week, Morgan Stanley chief executive James Gorman said he is ‘carefully re-evaluating’ the proper structure for the commodities unit after holding talks with Qatar’s sovereign-wealth fund last year about selling a stake in the business.
The past two quarters have been among the worst for commodities since 1995, he said.
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By GlobalData"The overall performance of the business can and will be improved," Gorman, said. "We continue to explore strategic structures that may make sense for us," Gorman added.
