The Wall Street Journal is reporting that financial services provider Morgan Stanley will eliminate 1,600 jobs in the first quarter of 2012, joining other banks across the sector in job cuts due to the spiral down in the market and global uncertainty.
A spokesman for the company said the job cuts, which represent 2.6% of Morgan Stanley’s total worldwide employees, will affect all staff levels and geographic areas.
Stanley, the sixth largest investment bank by assets, had about 63,000 employees globally as of September 30, 2011, according to the WSJ.
Financial-services companies have been searching for ways to lower costs as their profits have been hurt by the European sovereign debt crisis, tough economy, increased regulation and shrinking trading revenue.
In his 2011 annual report on the securities industry, New York State Comptroller Thomas DiNapoli said the New York securities industry could cut nearly 10,000 jobs by the end of 2012 — bringing total industry job losses to 32,000 since January 2008.
Meanwhile, Morgan Stanley 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.
The news of the Morgan Stanley job cuts sent its shares spiking up to nearly $15.60 this morning. MS is currently trading at $15.17, up .11 or .73 percent from its close yesterday.