US investment bank Morgan Stanley (MS) said in a filing that 580 of
the 1,600 job cuts it disclosed last month will be in New York City.
The filing, known as a "WARN" notice, requires businesses under The
New York State Worker Adjustment and Retraining Notification [WARN] Act
to provide 90 days' notice of a plant closing, mass layoff, relocation,
or reduction in work hours.
Morgan Stanley, whose shares have lost about 45 percent of its value
this year, filed the notice after the bank revealed its intent in
mid-December to slash 1,600 jobs across all levels of the company.
The job reduction in New York will come from Morgan Stanley's offices
at 1221 Avenue of Americas, 1 New York Plaza, 1585 Broadway and 750
Seventh Avenue, according to the notice.
Morgan Stanley has joined the list of major Wall Street banks, who
have announced lay offs this year amid tighter industry regulations and a
slump in investment banking and trading revenue across Wall Street.
The decision to layoff employees came as "we conduct our year-end
performance- management process and evaluate the right size of the
franchise for 2012," the company said at the time of announcing the job
cuts. The company cited economic reasons for the lay offs.
The cuts in New York, known as "rolling layoffs", commenced on December 15, 2011.
Earlier this year, Bank of America announced that it would reduce
30,000 jobs over the next few years to save $5 billion. Citigroup is
mulling slashing 4,500 jobs over the next few quarters, while Barclays
said it would cut 3,000 jobs. UBS intends to cut its workforce by
one-tenth over the next five years.
MS is expected to post a loss in the fourth quarter, hit chiefly by a
charge of $1.2 billion related to the a settlement with bond insurer
MBIA Inc. (MBI).
MS is currently trading unchanged at $15.29 in Wednesday early trade.