Morgan Stanley Plans to Let Go 'Hundreds' of Brokers: Report
NEW YORK (TheStreet) -- Morgan Stanley (MS) is reportedly firing hundreds of poorly performing brokers and trainees as the investment banking giant continues to sharpen the edges of its wealth management division.
According to a Reuters report, Morgan is planning to let go of 200 to 300 staffers, which represents less than 2% of its year-end total of about 18,000. The company will still have the largest brokerage force on Wall Street, due to its Smith Barney joint venture with Citigroup (C).
>>>Read More: Morgan Stanley Mulls Smith Barney'less Future
Morgan Stanley is making changes to the culture and performance of its combined wealth management franchise, which will eventually include all of Smith Barney, along with its legacy team.
The company is reportedly considering dropping the Smith Barney name from its wealth management division as it continues to integrate the business. It also recently named Greg Fleming, the former president and chief operating officer of Merrill Lynch, to replace Charles Johnston as president of the brokerage unit as Johnston plans to retire. Although Morgan may be getting rid of employees who didn't perform well, the firm doesn't appear to be whittling down staff on a permanent basis. Morgan Stanley has said it plans to maintain a headcount of 17,500 to 18,500 in its brokerage business and has put in place incentives to keep top revenue generators. Some of those losing their jobs didn't make the cut of an advisor training program. >>>Read More: Morgan Still Wants All of Smith Barney -- Written by Lauren Tara LaCapra in New York.>To contact the writer of this article, click here: Lauren Tara LaCapra. >To follow the writer on Twitter, go to http://twitter.com/laurenlacapra. >To submit a news tip, send an email to: tips@thestreet.com.
Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
TheStreet Quant Ratings
TRY IT FREENew! $49.95/yr
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
Product Features:
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Dividend Stock Advisor
TRY IT FREEJim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
