|
Morgan Stanley may cut
|
 |
March 8, 2001: 1:01 p.m. ET
Financial services firm readies for potential layoffs amid slowing economy
|
NEW YORK (CNNfn) - Morgan Stanley Dean Witter & Co. has asked managers of various divisions of the company to compile lists of employees who could be laid off, according to a source close to the financial services firm.
However, it remained unclear Thursday whether the lists are being drawn up for a definite round of layoffs or if the cuts are only being contemplated.
The managers were asked to target 7 to 10 percent of their staffs for the layoff lists, the source said.
 The news follows confirmation Tuesday by another Wall Street firm, Bear Stearns Cos. Inc. (BSC: Research, Estimates), that it will lay off 400 people and expects to have a hard time meeting its first-quarter profit estimates. Another firm, Citigroup Inc. (C: Research, Estimates), recently said it is prepared to make cutbacks in case the economic scenario worsens.
Morgan Stanley �(MWD: Research, Estimates) spokeswoman Judy Hitchen said the brokerage firm could not confirm or deny specifics because of rules about disclosing information ahead of its quarterly earnings report, due March 21.
"Although there is no across-the-board plan for layoffs, in light of current conditions we are looking at expense and headcount issues on a business-by-business basis."
Prudential, Merrill Lynch and J.P. Morgan have said they are planning to reduce headcount due to slow industry conditions. As the Dow Jones industrial average and Nasdaq have come off their highs of last year, initial public offerings and other investment banking activity have slowed noticeably, according to analysts.
Morgan Stanley currently has about 62,000 employees, slightly less than rival Merrill, which has 67,000 workers. Both are well below financial services titans Citigroup, with a staff of 108,000, and J.P. Morgan Chase, with 90,000 employees.
Morgan Stanley stock gained 30 cents to $67.05 in early Thursday afternoon trading. The stock is down about 39 percent from its 52-week high of $110, but is trading up from its 52-week low of $60. 
|
|
|
|
|
 |
|
