This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Morgan Stanley Plans to Let Go 'Hundreds' of Brokers: Report

NEW YORK ( TheStreet) -- Morgan Stanley (MS - Get Report) 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.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
MS $38.90 0.36%
AAPL $114.64 -3.20%
FB $94.09 -0.05%
GOOG $630.46 -0.12%
TSLA $266.10 2.40%

Markets

Chart of I:DJI
DOW 17,535.43 -62.77 -0.36%
S&P 500 2,094.48 -3.56 -0.17%
NASDAQ 5,110.0940 -5.2880 -0.10%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs