In this episode, Scott Becker discusses Morgan Stanley’s plan to lay off 2,000 employees—about 2.5% of its workforce—amid efforts to cut costs.
Chapter 1: What is the main topic of this episode?
This is Scott Becker with the Becker Private Equity and Business Podcast. Today's brief discussion discusses Morgan Stanley layoffs. So Morgan Stanley is looking at laying off ultimately what's a small portion of their entire workforce. But what happens with layoffs is, and we say this often,
Chapter 2: What are the implications of Morgan Stanley's layoffs?
A layoff that seems small analytically, 2,000 employees out of about 81,000 employees, is small analytically unless you're the person that loses the job. Then that layoff is very big. And so when we talk about layoffs, we just think it's always very important to understand there's a financial dynamic to it where the bank is trying hard to cut costs and avoid keeping employees.
employees on that aren't working very hard trying to trim the workforce some uh and at the same time the financial markets are responding well to that stocks up a few percent today but it's tough to say if that's them or just what's going on with the markets today and then also they're down about four percent year to date but again morgan stanley looking at cutting about 2 000 people they're not going to cut any of their financial advisors and again again that's those are revenue
producing people but they will cut about 20 and a half percent of their of their workforce and and we'll see how that goes um you know it's also they did comment uh their co-president commented in a news review from this discussion on it that the deal market remains a little bit slow which is always of interest to our private equity audience and who's listening out there
Again, Morgan Stanley to cut 2,000 people, never dull. Thank you for listening to the Becker Private Equity and Business Podcast. Let's hope it's not a sign of the times for banks and other financial institutions.