Morgan Stanley Commits to No Staff Layoffs This Year
Morgan Stanley said it won’t lay off employees this year, which is likely to be a tough one across Wall Street as the U.S. economy grinds to a halt.
Chief Executive James Gorman made the commitment in all-staff note the same day that new data showed a record 3.28 million Americans filed for unemployment benefits last week.
Nobody is expecting a banner year for bonuses, though: Alan Johnson, a consultant who advises big banks on compensation plans, this week said he expected Wall Street pay to be down as much as 40% this year, and 15% down for even top performers. Morgan Stanley laid off 1,500 workers at the end of last year, about 3% of its total, mostly in technology and operations.
Widespread layoffs are expected as the coronavirus pandemic sweeps through the economy, though white-collar professionals like Morgan Stanley’s traders, bankers and wealth advisers are less likely to lose their jobs.
Marriott International Inc. is furloughing tens of thousands of employees as it closes hotels around the world. Oil-field-services firm Halliburton Co. began a mandatory furlough covering 3,500 employees in Houston.