Financial services provider Morgan Stanley (MS) will cut 580 jobs in New York City, the company said in a filing with New York State's Department of Labor on Tuesday. The company cited economic reasons for the job cuts.
In a Worker Adjustment and Retraining Notification or WARN notice, New York-based Morgan Stanley said that the job cuts, known as "rolling layoffs" began on December 15, 2011 across four of its offices in New York. The bank's affected locations include 1221 Avenue of Americas, 1 New York Plaza, 1585 Broadway and 750 Seventh Avenue, according to the filing.
The WARN act requires private employers with 50 or more workers in New York state to provide 90 days' notice of a plant closing, mass layoff, relocation, or reduction in work hours.
Morgan Stanley's notice does not specify details, including positions, about the affected employees. However, the job cuts are part of the reportedly 1,600 job cuts announced by the company earlier in December.
In mid-December, media reports said that Morgan Stanley plans to cut 1,600 employees in the first quarter of 2012. The layoffs would represent 2.6 percent of Morgan Stanley's total worldwide employees. The bank had about 63,000 employees globally as of September 30, 2011.
Morgan Stanley has joined the list of big Wall Street banks, who have announced job cuts this year in light of tighter industry regulations and weak trading on Wall Street.
The company is expected to report a loss in the fourth quarter, hurt mainly by a charge of $1.2 billion related to the a settlement with bond insurer MBIA Inc. (MBI).
In late June, Goldman Sachs Group Inc. (GS) informed the New York State Department of Labor that it will lay off 230 employees due to economic reasons. In early December, Citigroup Inc. (C) announced plans to cut 4,500 jobs this year, while Bank of America Corp. (BAC) in September announced plans to cut about 30,000 jobs over the next few years.
MS closed Tuesday's trading at $15.29, down $0.47 or 2.98 percent on a volume of 13.14 million shares.
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org