Morgan Stanley (NYSE:MS) is preparing to slash about 3,000 jobs in the second quarter on expectations that a rebound in dealmaking activity won’t happen anytime soon, Bloomberg reports.
The planned job cuts would see the bank cut around 5% of its total workforce with most cuts likely to occur in the banking and trading business units. Morgan Stanley already slashed 2% of its workforce.
CEO James Gorman said on the earnings call last month that he doesn’t expect a rebound in dealmaking before the second half of 2023 or next year. Morgan Stanley generated 32% less revenue from its merger advisory and 22% from its equity-underwriting business in Q1.
The Morgan Stanley news comes after Lazard (NYSE:LAZ) said it plans to cut 10% of its workforce.
Morgan Stanley shares are up 3.4% year-to-date.