NEW YORK–The investment bank Morgan Stanley is laying off about 2% of its global work force, but it’s not an indicator of a trend likely to affect credit unions. Instead, the cuts are coming as deal-making grinds to a halt, two people with knowledge of the situation told the New York Times.
Other big banks have also announced job reductions or hiring freezes.
At Morgan Stanley, the layoffs will affect about 1,600 of its roughly 82,000 workers across all divisions, one of the people involved told the New York Times.
“Like other investment banks, Morgan Stanley had paused layoffs during the pandemic, as deal activity spiked industrywide and banks raced to find employees to handle the workload,” the Times reported. “But jitters in the global economy, alongside a steep slowdown in deal-making, have forced investment banks to once again prune their work forces.”
The Times noted that during Q3 of this year there were about 2,273 U.S. deals worth $289 billion, a 64% decrease in deal value and 36% drop in deal volume from the same quarter a year prior, according to EY.
What Other Banks are Saying
Separately, Goldman Sachs CEO David Solomon, who was described as being more cautious about the economy than even his own economists, said the bank may have to trim its headcount, while Brian Moynihan, Bank of America’s CEO, said that the bank wasn’t laying anyone off but that it had imposed a hiring freeze, the Times reported.
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