Morgan Stanley to Take $150 Million Charge, Cut 1,200 Jobs

  • Cuts said to include about 470 fixed-income, commodities staff
  • Reductions amount to about 25% of fixed-income workforce

Morgan Stanley Cuts About 25% of Fixed-Income Workforce

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Morgan Stanley will take a severance charge of about $150 million in the fourth quarter as the company pares back its fixed-income trading business to improve profitability.

The charge will cover the cost of cutting 1,200 workers worldwide, including about 470 traders and salespeople in its fixed-income and commodities business, according to a person briefed on the matter. That amounts to 25 percent of Morgan Stanley’s fixed-income trading staff, with other reductions coming in infrastructure and support roles, said the person, who asked not to be identified because the figures aren’t public.