The investment bank Morgan Stanley plans to cut about 1,600 jobs, nearly 3 percent of its workforce, a person familiar with the bank said Wednesday. The cuts will focus on senior ranks at the bank.
About half of the cuts will be in the U.S. Morgan Stanley's investment banking unit has been asked to cut about 6 percent of its staff. Back-office functions, including human resources and communications, have also been asked to cut staff. The person familiar with the matter wasn't authorized to speak on the record and insisted on remaining anonymous.
Job cuts have become common in the banking industry, which has been shrinking in the years since the financial crisis imploded.
In December, Citigroup said it would cut 11,000 jobs, about 4 percent of its total workforce, and Bank of America has also been trimming jobs.ITEM #2:
American Express has announced plans to cut 5,400 jobs worldwide from its total workforce of 63,500 by the end of 2013.
The credit card provider said it took almost $600m (£370m) in after-tax charges in the fourth quarter of 2012AS LONG AS LAYOFFS LIKE THESE PERSIST AND UNEMPLOYMENT REMAINS HIGH, PEOPLE WITH JOBS WILL NOT SPEND FREELY AND THE ECONOMY WILL STAGNATE.
THE ONLY WAY TO IMPROVE THE JOBS NUMBERS IS TO GROW THE ECONOMY - AT LEAST 3%/YEAR.
RAISING TAXES, INCREASING REGULATIONS, AND INCREASING DEFICITS AND DEBT WON'T DO THAT; IN FACT IT WILL HAVE THE OPPOSITE EFFECT.