Morgan Stanley plans to cut about 1,000 financial advisers, or 10%, of its retail brokerage unit, according to Reuters.
This will also affect the number of new broker recruits, which will be reduced to 1,000 in 2006 from 2,400 this year but would continue to hire experienced brokers focused on wealthy clients.
The firm currently has about 10,500 brokers and plans to make the cuts after it identifies those “who are not up to our standards,” Reuters reports an internal memo from acting President Zoe Cruz said.
Apparently these changes were being considered before former Chief Executive Philip Purcell left, according to Reuters. Purcell was replaced on June 30 by former Morgan Stanley President John Mack.