10 Jan 2013

Morgan Stanley to cut 1600 jobs soon

8:02 am on 10 January 2013

Wall Street investment bank Morgan Stanley is reportedly planning to eliminate 1600 jobs in its institutional securities trading business in the coming weeks.

A source told AFP that the job cuts, due to "market conditions," will occur half in the United States and half abroad.

The cuts will eliminate 6% of the positions in the Institutional Securities unit as well as support areas, and are in addition to the bank's plan to cut 7% of payrolls announced last year.

AAP reported the bank's Institutional Securities unit had a pre-tax loss from continuing operations of $US1.9 billion in the third quarter of last year, compared with income of $US3.4 billion in the same period in 2011.