A well-placed source says that Morgan Stanley is laying off about 350 people in its investment banking division today (later stories put number at 300 and note that layoffs include traders). The source attributes the layoffs to troubles in the economy in general and the Internet sector in particular. The latter logic wouldn’t seem to make sense–the layoffs, if true, are likely tied to the mortgage sector.
The layoffs apparently include some senior folks, as well as the usual platoons of minions. Most of the body count is reportedly in the NY offices.
Reuters at 10:14am puts number at 300, provides more believable logic:
NEW YORK, Oct 17 (Reuters) – Morgan Stanley is cutting about 300 jobs in its institutional securities division, mostly in mortgage, fixed-income trading and other businesses hardest hit by the recent market turmoil, a person familiar with the situation said.
About two-thirds of the cuts will take place in the United States, about a third in Europe and a handful in Asia, the source said. Morgan Stanley declined to comment. (Reporting by Joseph A. Giannone)
Bloomberg at 10:39 also puts number at 300, similar logic:
By Christine Harper
Oct. 17 (Bloomberg) — Morgan Stanley, the world’s second-
biggest securities firm, is eliminating about 300 jobs to counter
a drop in revenue from the fixed-income markets and as part of a
plan to move people to Asia, said a person familiar with the
The cuts will affect the New York-based firm’s institutional
securities division, which includes fixed-income, equities and
investment banking, said the person, who declined to be
identified because the reductions aren’t public. About 200 of the
jobs are in the U.S. and most of the others are in Europe, the
The reductions were earlier reported by Web site Silicon