A source told Reuters on Tuesday that Morgan Stanley (MS.N) will reduce 3,000 workers in the second quarter, its second round in six months. The source claimed slow dealmaking and a challenging economy drive the investment bank to review its staffing.
After another quarter of falling investment banking fees, total revenue fell nearly 2% to $14.5 billion.
Given market uncertainty and inflation, Morgan Stanley finance chief Sharon Yeshaya said “expense management” was a priority last month.
Wall Street’s investment banks lost deals as investors became wary of volatile markets and rising interest rates.
Startups have also halted first public offerings until investor mood recovers.
According to Dealogic, first-quarter M&A volumes dropped by nearly half.
In December, Morgan Stanley CEO James Gorman announced “modest” global employment layoffs.
The bank laid off about 4% of its 82,000 employees in March.
