American investment bank Morgan Stanley is reportedly set to trim its workforce by nearly 1,500 to drive efficiency.
The redundancies, which represent nearly 2% of its total workforce, will primarily hit the investment bank’s technology and operations divisions.
The cuts will also include people employed in sales, trading and research operations, Bloomberg reported citing sources familiar with the development.
It may also include some senior executives working in the American investment bank’s New York and London offices.
However, a Morgan Stanley spokesperson did not confirm the move when contacted by the publication.
The job cuts are expected to have an impact of $150m to $200m in the company’s fourth-quarter financial results.
Other publications including Reuters and CNBC reported that the latest job cuts is driven by dim global economic outlook. The American investment bank seeks to reduce its expenses amid the on-going trade war and market volatility.
In October this year, the wealth management arm of Morgan Stanley reported net revenues of $4.39bn for the third quarter of 2019. The business remained nearly stable compared to the results of the previous year.
The asset management unit’s revenue grew 3% from $2.57bn in the same quarter last year to $2.64bn in 2019 Q3.
Most of the investment banks globally have been reducing their workforce due to digitalisation and drop in trading revenue. This year, Citigroup and Deutsche Bank have also made hundreds of jobs redundant.