The New York Times has reported that Morgan Stanley is getting ready to fire as many as 22 senior investment bankers in the next few days. The newspaper quotes an unnamed source 'briefed on the plan'.
The bankers, who are said to have been identified but not yet advised of their fate, represent around 6% of Morgan Stanley's global investment banking managing director population. The sole criteria for this latest cull is thought to be performance. The unlucky bankers are thought to be spread around the world, although a number are likely to be chopped in New York. The firm is said to want to get rid of some over-rated senior bankers to make way for the younger talent coming through.
Morgan Stanley CEO, John Mack, alluded to possible personnel changes when speaking at a financial services conference Tuesday. He said that 'I've said to our managers, 'we need to manage our business'......everyone looks at the portfolio of people and in looking at that there may be some changes'.
The firm will advise staff of their bonus numbers in mid-December. It now looks as if some unfortunate bankers will be contemplating spending redundancy, rather than bonus, cheques.