Speaking at an investor conference Morgan Stanley CFO Ruth Porat said "As Morgan Stanley continue to improve broker efficiency, we may reduce our broker headcount below previously announced targets."
"The number of financial advisers in the firm’s majority-owned Morgan Stanley Smith Barney joint venture with Citigroup might shrink below the previous target of 17,500 to 18,500," Porat added.
These potential job cuts come on top of axing of about 300 trainees and lower-producing brokers in March this year.
According to media reports, Morgan Stanley’s investment-banking and trading division won’t be touched for now.
In the first quarter of 2011, the company’s compensation costs chewed up a whopping 57% of revenues.
Morgan Stanley is not the only firm to initiate such measures, its rival banks including Wells Fargo and Bank of America, have launched cost-cutting efforts, with BofA looking to reduce its branch count by 10%.
