Morgan Stanley is planning to eliminate several hundred jobs, the first such move under
The cuts will affect less than 1% of employees in the wealth-management business, which has about 40,000 workers and is the firm's largest unit, according to a person with knowledge of the matter.
A representative for Morgan Stanley declined to comment.
Pick took the helm in January from
READ MORE:
The bank's shares have been the worst-performing among its biggest U.S. peers this year, down about 10%. Last month, the company warned that it will take longer to achieve its profit-margin goals in the wealth unit and signaled that the below-target results will last a little while longer.
The division, which got a boost for much of last year from higher net interest income, could see that benefit start to fade if the Federal Reserve starts lowering interest rates later this year.
READ MORE:
Net new assets in the unit remained under $50 billion for a second straight quarter in the last three months of 2023. That pace is short of Morgan Stanley's target of more than $300 billion a year.
During his first quarterly earnings call with analysts last month, the new CEO said that
The Wall Street Journal reported the job cuts earlier Wednesday.