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Layoffs at Morgan
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April 24, 2001: 11:20 a.m. ET
Brokerage firm to eliminate 1,500 jobs as slowing economy hurts business
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NEW YORK (CNNfn) - U.S. brokerage firm Morgan Stanley is cutting 1,500 jobs, a source confirmed Tuesday, as the financial services company becomes the latest to be affected by volatile stock markets in the wake of a slowing economy.
A company source confirmed the layoffs, which had been rumored in earlier published reports. A Morgan Stanley spokeswoman told CNNfn the company has "no official comment" on the layoffs.
Morgan Stanley (MWD: down $1.01 to $62.79, Research, Estimates) employs 63,500 people globally, and staff has been told the bulk of the layoffs will occur in the United States within the investment management and securities divisions, reducing the staff in those units by about 4 percent, a source familiar with the plans told Reuters news service Tuesday.
 Other firms, including rivals Goldman Sachs (GS: down $0.66 to $92.30, Research, Estimates), Merrill Lynch (MER: down $0.04 to $62.44, Research, Estimates), and Citigroup (C: up $0.80 to $49.29, Research, Estimates), are also trimming staff in the face of sharply declining business resulting from the slowdown in the U.S. economy.
The reductions be achieved through a combination of early retirements and compulsory cuts in the two business areas. Morgan Stanley's securities division includes equities, fixed income, and investment banking, and the job cuts will hit both institutional and retail elements of the business.
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But no cuts are slated to occur among the firm's 14,000 financial advisers or the group's credit card business, another source familiar with the company's plan told Reuters. 
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