With no turnaround in sight, Morgan Stanley (MS) is set to can another 5% of its 47,000 person, according to The Journal. That would come up on top of 7,000 cuts last year, which means they’re getting close to a 20% cut.
Goldman Sachs, which has cut 10%, is also looking to cut more heads, according to the report.
Even if things do stabilise, the banks are looking at big-time margin compression, as trading revenue disappears and they focus more on steady, low-margin nuts and bolts brokerage business.
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