The year 2019 has not been easy for most financial institutions. A lot of banks have to revise their business model and expenses. Cutting jobs is the easiest solution for Morgan Stanley and consorts, but it won’t permanently fix the problem.
There are plenty of issues in the banking industry today.
More Trouble for Morgan Stanley
Most service providers struggle to make ends meet, as profit margins tighten and a lot of services have become unfavorable.
For Morgan Stanley, the economic uncertainty forces the bank to cut 1,500 jobs over the next few years.
This represents close to 2% of the workforce to be laid off in the process.
Most of the jobs will be lost at Morgan Stanley’s operations and technology departments.
When even the world’s largest equity trading firm is cutting jobs, it has become apparent that there is a lot of pressure on the banking industry today.
This news comes on the heels of other unfavorable news for Morgan Stanley.
The financial powerhouse faces a $26m fine for engaging in pump-and-dump tactics to manipulate bond prices through its London desk.
With 14 different French government bonds and eight Belgian bonds affected throughout 2015, the fine imposed upon Morgan Stanley is relatively small.
In more positive news, the bank also closed a $900m acquisition deal earlier in 2019.