Morgan Stanley: 580 layoffs may come from NYC

FO jobs?

yeah, i just read this. http://www.reuters.com/article/2011/12/15/us-morganstanley-idUSTRE7BE17…

At Morgan Stanley, which employs 62,648 people globally, the job cuts will come across all staff levels and geographic areas, including investment banking, trading and back-office functions, spokesman Mark Lake said.

From Reuters

http://tradingevents.blogspot.com/2011/12/update-morgan-stanley-layoffs…

The Journal wrote that "Layoffs will be in areas such as capital-intensive fixed-income businesses." Does anyone have any insight on what the effect will be to origination - ie the GCM desks? Or is this mostly in the trading business?

Certainly committing to LBO and acquisition financing is fairly capital intensive...

for IB & trading, as always, expect most cuts from senior levels (i.e. MDs) associates and analysts will take less of the hit

^^ agree, I dont think associates are safe though... Vps are prolly more safe since what they do is somewhat imporatant,,,,, assoicates I feel like are analysts that make more money, so they whould just keep more analyst and get rid of the associates I am guessing. I guess its true thoough that if there is no associates then they wouldnt really need VP's so I dont know I think everyone will be effect except analysts.

i wouldn't be surprised if UBS i-banking is gone within next 5 years...

Sorry when I said VP I ment MD,

You are correct sir, VP's are most susceptible to the "guillotine". I am sorry for my misleading response. :D

Mr. LeoMessi

"Spokesman Mark Lake said that the cuts will occur globally and will include analyst, associate, vice president, executive director and managing director levels."

Guess nobody is safe

http://online.wsj.com/article/AP592c760724534e2ebfef2442bdc36aa8.html

Wait,

isn't this layoff mostly for people in back office? is MS cutting their IBD people heavily? I thought MS IBD was doing really well, or at least better than other banks.

The cuts will come from every division (including FO) and will be across all levels. However, clearly some areas will be experience more pain than others. I'd say that equities and IBD should be okay as they've been performing well. I expect fixed income to get axed pretty hard...

Associates/VP's are most likely to be cut. Analysts are cheap and do most of the work, and MD's are too valuable to lose.

The guys in the middle don't bring in business but are well-compensated. Expect them to go first.

Im thinking theyd be smarter to get rid of unnecessary layers of middle management...