Morgan Stanley is planning to get rid of about 10% of its brokers, which is about 1,000 jobs. The firm is trying to weed out an brokers that aren’t up to its standards according to acting president Zoe Cruz.
Morgan Stanley has about 10,500 brokers right now and plans to cut new trainees to 1,000 next year from 2,400 this year. The firm said, however, that it will continue to hire experienced brokers.
The changes at the firm, which has in recent months been roiled by investors and former executives working to topple former Chief Executive Philip Purcell, were being considered before Purcell left, said a source close to the situation.
Purcell surrendered to months of pressure in mid-June and stepped aside. He was replaced on June 30 by former Morgan Stanley President John Mack who quit the firm in 2001 after losing a power struggle with Purcell over the top job.
Earlier this month, John Schaefer, head of Morgan Stanley’s brokerage unit, resigned. His replacement on an interim basis is Ray Harris, the managing director of client solutions.
In afternoon trading today on the New York Stock Exchange, Morgan Stanley shares took a hit as they fell 13 cents to $53.38, according to Reuters.
Chris is a staff writer for murdok. Visit murdok for the latest ebusiness news.
