NEW YORK (Reuters) – Morgan Stanley is making modest job cuts across the globe, Chief Executive Officer James Gorman said in an interview during the Reuters NEXT conference, as Wall Street comes under pressure with dealmaking slowing down due to the central bank’s monetary tightening.
“Some people are going to be let go,” Gorman said, without specifying numbers. “We’re making some modest cuts all over the globe. In most businesses, that’s what you do after many years of growth.”
Corporations have shied away from dealmaking and stock listings as inflation in the United States continues at levels way above the Federal Reserve’s 2% target. That has put pressure on investment banks like Morgan Stanley, which earned billions of dollars in advisory fees amid unfettered market optimism last year.
Other Wall Street firms, including investment banking powerhouse Goldman Sachs Group Inc and major lender Citigroup Inc , have also cut jobs this year.
Morgan Stanley’s headcount reduction will affect employees globally, Gorman added.
To view the Reuters NEXT conference live on Nov. 30 and Dec. 1, please click [https://www.reuters.com/world/reuters-next/]
(Reporting by Lananh Nguyen and Saeed Azhar; Editing by Nick Zieminski)
