Morgan Stanley is moving jobs overseas.
The US bank set out a plan to cut costs back in January, and CEO James Gorman said at the time that “too many employees” were based in high-cost centres.
“Now is the time to tackle head-on our infrastructure costs,” he said.
Jonathan Pruzan, chief financial officer at the bank, provided an update on the situation at the Barclays Financial Services Conference on Monday.
“We said we were going to deploy 1250 people into our lower cost centres of excellence in Mumbai and other parts of the world,” he said. “We have had about 450 jobs that we’ve put in those centres so far.”
“To date, the vast, vast majority has been through attrition, so when someone leaves in a core location, we replace that in one of these centres of excellence,” he added.
Morgan Stanley isn’t the only bank pulling this move. UBS has a plan to move about 2,500 jobs to low-cost locations such as Poland, India, China, and Nashville, Tennessee, over the next year.
And at Goldman Sachs, around a quarter of the bank’s staff work in low-cost “strategic locations” like Bengaluru, Salt Lake City and Dallas/Irving:
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