Morgan Stanley is the latest US investment bank to announce mass job cuts, this time with the loss of 600 jobs.
The cuts will see 500 employees in the US and another 100 in Europe, mainly in the UK, lose their jobs as Morgan Stanley attempts to restructure its mortgage business. According to Reuters, the bank won’t be exiting the mortgage market but will instead combine its three mortgage businesses into one, based in Texas.
“Morgan Stanley remains committed to building the leading vertically integrated mortgage business and growing our Saxon Capital servicing operations despite the cyclical downturn in the mortgage markets,” says Tony Tufariello, global head of securitised products.
Analysts were not surprised by the news. Marshall Front of Front Barnett Associates, says it is time for the bank to “look at their prospects in the marketplace right now and bite the bullet.”