Like so many banks over the past four years, investment bank Morgan Stanley has announced plans for a major lay off. The bank announced Wednesday that it will shed 1,600 workers, almost 3 percent, by thinning senior ranks at its facilities.
Meanwhile, U.S. unemployment remains stuck near 8 percent. About half of the new cuts will come from the U.S. Morgan Stanley’s investment banking unit; the cut involves about 6 percent its U.S. staff. An unidentified source from the bank said cuts will include some reductions in support staff like human resources and communications specialists.
In December, Citigroup announced a layoff of 11,000 of its employees, which accounts for about 4 percent of its total workforce. Meanwhile, Bank of America has been significantly trimming its ranks.
Industry analists say the massive layoffs are in response to a continued weak economy that is being acerbated by new regulations that are cutting off traditional sources of revenue.
Compared to last year’s 62,200 employees, as of Sept. 30 the bank employed about 57,700 people, showing a loss of about 7 percent of its staff in just one year.