Morgan Stanley Job Cuts: Financial Advisors Still Immune to Wall Street Woes

Matt Smith

25 January 2008

Financial advisors continued to remain immune to wide-ranging staff cuts currently taking place across Wall Street, with Investment bank Morgan Stanley confirming no FA would lose their jobs as part of the planned reductions at the firm. Morgan Stanley said it would make a 2 per cent reduction, accounting for 1,000 people in its almost 50,000 global word force yesterday, including in its wealth management business, according to reports. However a spokesman for the group confirmed to WealthBriefing no FAs will be involved in any personnel reductions. “In fact we will continue to grow advisors in 2008,” he said. The Morgan announcement followed assurances by Merrill Lynch at the beginning of the week staff reductions would not extend to the 16,000-plus advisory business despite its record $9.83 billion forth-quarter loss. News of the layoffs at Morgan Stanley was first reported by CNBC television. "The firm is engaged in an ongoing process of assessing its personnel needs in light of overall market conditions, business priorities and individual performance will involve headcount reductions in some areas," the firm’s spokesman said.