In May, Morgan Stanley announced plans to cut 3,000 positions or approximately 5% of their staff. Currently, Morgan Stanley has 16,000 financial advisors. While financial advisor positions are not expected to be cut, support and administrative staff are on the chopping block. Financial advisors rarely are included in layoffs at large firms like Morgan Stanley because they generate revenue and firms have other ways of addressing non-productive advisors.
Morgan Stanley has reported total severance costs of $308 million linked to the layoffs, or "employee action", with $78 million in severance, or 25%, going to wealth management personnel. Though, it is unclear how many or what type of employees in wealth management were laid off.
Further, $207 million of the severance costs were associated with the bank's institutional securities group, including bankers and traders. The remainder went to investment management. Meanwhile, Morgan Stanley reported net new assets of $90 billion for the quarter. The assets came from financial advisors, the firm's stock plan business, recruiting, and its E-Trade business.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
