Morgan Stanley today announced it laid off approximately 300 bankers, including associates and several senior managers. The announcement comes on the heels of fellow financial institution J.P Morgan Chase's statement saying it would chip away at 100 employees.
Most of the MS layoffs will be U.S.-employed workers, while about 75 workers in Europe and a handful of Asian-based workers will be let go. The financial firm, like a slew of U.S. companies in recent years, said it was moving resources to foreign regions in order to seek the best potential for growth (i.e.-cheaper labor).
In related news, MS today shed even more costs, selling its 7.2% stake in New York Times (NYT). The sale virtually pours salt in NYT's wounds, as the struggling newspaper stock is trading at a 52-week low. Despite the declining stock, Times' Chairman Arthur Sulzberger Jr. says good riddance to bad rubbish,' as the Times and Morgan Stanley have been at odds for years over cost control.
After the dramatic downsizing in fiscal responsibility, MS shares are currently trading at $65.83, virtually parallel with its 20-day moving average. The MS put/call open interest ratio is fairly even, but analysts have a bullish outlook, with 7 strong buy ratings, 2 buy ratings, 3 hold ratings, no sell ratings, and 1 strong sell.
MS proclaims the layoffs won't effect the company's earnings.