Today Morgan Stanley’s CFO, Ruth Porat, hinted there are some big cuts coming to the bank’s Smith Barney brokerage unit, according to Crains.
“As we continue to improve broker efficiency, we may reduce our broker headcount below previously announced targets,” she said at an investor conference.
Ie. Layoffs are coming.
These potential job cuts come “come on top of a reduction of about 300 brokers during the first quarter,” Reuters reported.
Originally, cuts aimed to reduce the Smith Barney 18,500 to 17,500. The bank won’t reveal the new headcount target, but at the end of Q1, there were 17,800 financial advisers.
But Morgan Stanley spokesman James Wiggins “said additional reductions would come by pruning weak performers, as was done in the first quarter,” Reuters reported.
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