Morgan Stanley to take $150 million severance charge in fourth quarter

Tue Dec 8, 2015 12:00pm EST
 
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(Reuters) - Morgan Stanley will take a $150 million severance charge in the fourth quarter related to a workforce reduction, a company spokesman said on Tuesday.

The charge will cover the cost of cutting jobs of 1,200 workers worldwide, including about 470 front-office employees in its fixed-income business, a source familiar with the matter said.

The news was first reported by Bloomberg earlier on Tuesday. (bloom.bg/1R7Ku17)

Morgan Stanley planned to cut up to 25 percent of its fixed-income jobs, a person familiar with the matter said last month.

Metals industry sources told Reuters earlier on Tuesday that the U.S. investment bank was closing its base metals trading desks globally, possibly as part of a wider job cuts program.

(Reporting By Sudarshan Varadhan in Bengaluru and Olivia Oran in New York; Editing by Maju Samuel)

 
The corporate logo of financial firm Morgan Stanley is pictured on the company's world headquarters in the Manhattan borough of New York City, January 20, 2015.   REUTERS/Mike Segar