American financial institution Morgan Stanley is reducing staff force across its currency and rates trading businesses to address slow market environment.
The company has terminated traders, salespeople, and back-office support employees.
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Less than 100 people have been affected by the decision and some were offered other jobs at the company, reported The Wall Street Journal citing a person familiar with the developments.
At the company Financials Conference, Morgan Stanley CEO James Gorman said the move would have modest effect to the businesses’ revenue, while boosting returns.
"We’ve been through another recent undertaking where we’ve been optimizing our front- and back-office head count, reflecting what we think is our opportunity set across foreign exchange and rates," added Gorman.
Morgan Stanley has also introduced new threshold levels for employee pay expenses and reiterated the company’s previous return target for 2015.
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By GlobalDataThe compensation ratio should come down below 55% at its wealth management business, and the company’s return on equity is expected to be at least 10% in 2015, irrespective of interest rates, Gorman stated.
