Morgan Stanley is cutting about 1,500 jobs globally, including several managing directors, as part of a year-end efficiency push.
The cuts are skewed toward technology and operations divisions, but also include executives in sales, trading and research operations, people with knowledge of the matter said.
The reductions amount to about 2 percent of the firm’s workforce, according to one of the people, who asked not to be identified because the information is private.
The bank plans to take a charge in the range of US$150 million to US$200 million in its fourth-quarter results tied to the cost of the cuts, one person said.
Investment banks around the world have been trimming staff amid a slump in trading revenue and the expectation that more of the business would move to electronic platforms that require fewer humans. Citigroup Inc and Deutsche Bank AG are among firms that have cut hundreds of trading jobs this year.
A spokesman at New York-based Morgan Stanley declined to comment.
The Wall Street firm has been in the spotlight for an investigation into its currency-options desks.
The bank is probing whether traders improperly valued the esoteric securities, concealing as much as US$140 million of losses, Bloomberg reported last month.
The cuts being carried out also include senior executives on its currency and bond desks in New York and London.
Separately, HSBC Holdings PLC is looking to sell part or all of its retail banking business in France, which employs thousands of people, sources close to the negotiations said on Monday.
A company source confirmed details reported in French financial newspaper Les Echos that discussions are to begin with French and foreign banks who have shown an interest.
HSBC has more than 8,500 employees in France, many of whom work in the retail business.
The London-based, Asia-focused bank has been trying to lower costs as it faces uncertainties caused by the US-China trade dispute and the UK’s possible departure from the EU.
HSBC did not confirm the report, saying only that a strategic review is underway, but no decision has been taken.
French Democratic Confederation of Labour union delegate Pascal Montmain said that he had been in a meeting with senior management, who had said they were looking at internal restructuring or the transfer of part of the bank’s retail activities.
Additional reporting by AFP
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees
GOGOROS TO GO: The scooter maker’s CEO said that the electric vehicles ‘are the perfect complement to a program designed to stimulate the Taiwanese economy’ Minister of Economic Affairs Wang Mei-hua (王美花) yesterday announced a draw to encourage people to claim their Triple Stimulus Vouchers digitally. The prizes include movie tickets and 25 electric scooters donated by Gogoro Inc (睿能創意), Wang said. The Ministry of Economic Affairs said that it would hold a scooter draw every day for the next 10 days, beginning yesterday, after which there would be a draw every week for 15 weeks. The first winner was a Taiwan Cooperative Bank (合庫銀行) credit card user, the ministry said. The benefits of claiming the vouchers digitally extend beyond the draws, with many businesses offering special deals for