Wall Street investment bank Morgan Stanley is planning to cut several hundred jobs in its wealth management division, The Wall Street Journal reported Wednesday, citing people familiar with the matter.
The layoffs, which are expected to impact less than 1% of the unit's 40,000 employees, are one of the first moves by new Chief Executive Ted Pick, who took the helm from James Gorman on Jan. 1.
The wealth management division, critical to Morgan Stanley's revenue and profits, has been showing signs of weakness lately. Its revenue was flat in the fourth quarter from a year earlier.
With $5 trillion of assets under management, the wealth unit derives half of the Wall Street bank's total revenue.
A few managing directors and some employees who do not interface with customers, will be given notice of their layoffs, possibly as soon as this week, sources familiar with the situation said.
Morgan Stanley did not immediately respond to a Reuters request for comment.
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