Morgan Stanley to cut 1,200 jobs: source

[NEW YORK] Morgan Stanley plans to cut 1,200 jobs, including about 470 bankers and traders in its fixed-income trading division, a person familiar with the matter said on Tuesday.

The cuts hit 25 per cent of the staff of the division that trades corporate bonds, treasury bonds, commodities and foreign exchange, with the other 730 affected employees working in support functions, this person told AFP.

The total jobs to be eliminated represent a bit more than two per cent of Morgan Stanley's 56,000 workers.

Morgan Stanley plans a US$150 million charge in the fourth quarter in connection with the restructuring, a spokesman for the US bank said.

In an internal memo to staff reviewed by AFP, Morgan Stanley executives Colm Kelleher and Ted Pick said the job cuts "will result in businesses that are critically and credibly sized for the current market, while maintaining the ability to deliver for our clients across products and geographies."

Shares of Morgan Stanley fell 1.9 per cent to US$34.03 in midday trade.

AFP