Morgan Stanley will be straying ever further from its Wall Street roots in the coming months as it shifts more operations to lower cost cities like Mumbai and Budapest as it aims to slash costs.
Reuters reports that the investment bank on Tuesday announced an initiative to cut up to $1bn by 2017 by using technology and outsourcing jobs now in its New York headquarters and other higher cost cities. However, it declined to give specific details about the number of jobs it would move to lower cost centres.
While shifting so-called back office operations to cities where salaries are a fraction of New York or London is not entirely new, the bank's Chief Executive James Gorman said the pace will now accelerate.
"We have too many employees based in high-cost centres doing work that can sensibly be done in lower cost centres," Gorman said on a fourth-quarter analyst call with analysts.
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