Wall Street Layoffs: More Than One-Third Of Morgan Stanley Job Cuts To Hit NYC

More than one-third of job cuts at Morgan Stanley will likely hit workers in New York City.

Nearly 600 of the 1,600 job cuts that Morgan Stanley announced last month will probably come from New York City, according to a regulatory filing cited by Bloomberg. The Morgan Stanley layoffs are just one part of a wider trend; Wall Street firms have said they will eliminate more than 200,000 jobs around the world this year. Thomas DiNapoli, the New York State Comptroller estimated earlier this year that 10,000 New York-based employees of the securities industry will lose their jobs by 2012, according to The New York Times.

Bank of America announced in September that it would slash 30,000 jobs over the next few years to save $5 billion. Since the announcement, BofA employees have been flooding rival banks with resumes, Reuters reported last month. Still, they may be hard-pressed to find a job. Citigroup is planning to cut 4,500 jobs over the next few quarters, while Barclays said in August that it would slash 3,000 jobs. UBS plans to reduce its workforce by one-tenth over the next five years.

Though financial industry workers may be plagued by constant layoff announcements, those who survive will likely be handsomely rewarded. Seven big banks' pay data indicate that Wall Street compensation is on track to exceed 2010 levels, according to an analysis from the Public Accountability Initiative.

New hires are also raking it in. Banks also boosted their use of "guaranteed bonuses" -- or the practice of guaranteeing employees a bonus before they've ever made a trade -- in 2010, The Institute for International Finance found.

Wall Street workers seem prepared for a boost. Most financial industry employees say they expect to get the same or higher bonus as what they got last year. Still, if last year's pattern holds true, the workers may not get their wish. Wall Street bonuses dropped 9 percent in 2010.

Also on HuffPost:

Wall Street isn't the only industry slashing jobs. Here are the 2011 layoff kings:

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11. Sears Holding Corporation

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Estimated layoffs in 2011: 700 Sears Holding Corporation announced the layoffs of about 700 workers in the higher-ticket appliances department of the Kmart stores in June. Some of those workers might have been transferred to other locations, and other employees were trained to answer questions from customers about the appliances, according to Sears. With more than 300,000 workers, 700 might not seem like much. The problem is that it is just one more "death of a salesman" report of a company that has lost its greatness and is in decline. Read more at 24/7 Wall St.

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Estimated layoffs in 2011: 700

Sears Holding Corporation announced the layoffs of about 700 workers in the higher-ticket appliances department of the Kmart stores in June. Some of those workers might have been transferred to other locations, and other employees were trained to answer questions from customers about the appliances, according to Sears. With more than 300,000 workers, 700 might not seem like much. The problem is that it is just one more "death of a salesman" report of a company that has lost its greatness and is in decline.

Read more at 24/7 Wall St.

comments(116)

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Comments

[Valerie Valentine]

05:21 PM on 01/05/2012

On Citi Bank they have not paid any taxes for years now. In fact I do not think any Bank pays taxes. The Big Banks run this Country so they are exempt from paying taxes. You know how it goes the one who runs the money actually runs the Country. That is why it is important that people try to stop doing business with Big Banks and instead do business with Small City Banks. We can put them(Big Banks) out of business if they do not have your money they will not be able to make money.

[Lucy Van Pelt]

03:29 PM on 01/05/2012

Hmmm, I'm not so sure the people being laid off are the ones that deserve to be laid off. Sadly, that is rarely the case in the real world where nothing is ever fair. I'm sure the job losses are for the middle and lower paid workers at the company. I've never seen those at the top ever suffer, shed a tear, or sacrifice a penny of their bloated salaries and bonuses to help save someone else's job. So, I guess I must refrain from "jumping for joy" until I know exactly who these layoffs will be effecting.

[Mark Coble]

07:57 PM on 12/30/2011

Sorry about that but I NEED that 22 million dollar bonus.

[TAIsabel]

01:19 PM on 12/30/2011

HAPPY NEW YEAR!!!

[l78lancer]

02:04 PM on 12/29/2011

They still are operating under the old model. Layoff won't generate any improvement even if it does improve the bottom line temporarily by cutting costs. Changes in policies and practices (and governance) will affect profitability and stability.

They should have started laying off at the top.

[l78lancer]

01:57 PM on 12/29/2011

"New hires are also raking it in. Banks also boosted their use of "guaranteed bonuses" -- or the practice of guaranteeing employees a bonus before they've ever made a trade -- in 2010, The Institute for International Finance found.

Wall Street workers seem prepared for a boost. Most financial industry employees say they expect to get the same or higher bonus as what they got last year. Still, if last year's pattern holds true, the workers may not get their wish. Wall Street bonuses dropped 9 percent in 2010."
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Wall Street is the nexus of the economic problems in ths country, yet these clowns are still expecting bonuses for poor performance while most of the rest of the country continues to struggle with recovery.

The will not see that they've been part of Alice In Wonderland until they have lost their own jobs.

[Raccoon1]

08:10 AM on 12/29/2011

Once again, the 'workers' will suffer while the CEO's get yet another bonus for increasing the bottom line.

[Raccoon1]

08:09 AM on 12/29/2011

Start printing more job applications for McDonald's.

[Bor Zoi]

06:55 PM on 12/29/2011

We make fun of McDonald's but at least when you give them money, you actually get something back. Don't know if we can make the same claims with some banks.

[nick keopke]

11:26 AM on 01/05/2012

Even if it is partly wood that you're getting in return.

[westytx]

11:08 PM on 12/28/2011

Guess those Occupy Wall Street bums were right. When they were protesting the NYC big banks, they carried signs "You are just one layoff away from being here".

Now those employees of the Big Wall Street banks can look in a mirror and see a REAL 99percenter-no guesswork needed.

[Terri Skau]

08:41 PM on 12/28/2011

A friend turned me onto this good reading called. The Powell Manifesto.....

[Terri Skau]

08:22 PM on 12/28/2011

Hoooooorrrrrrrraaaaaaaayyyyyyyyy. Now maybe they'll like it when they can only find work making minimum wage and just surviving like the rest of us.

[Raccoon1]

08:11 AM on 12/29/2011

It'll only be the lower echelons. The top brass will still be there cashing their bonus checks.

[Terri Skau]

10:05 AM on 12/29/2011

True. But the lower echelons have made a lot of money as well. And when they handed me my last pay check I'd ask to be paid with non debt greenbacks.

[Birdman 49]

03:56 PM on 12/28/2011

They need to be broken back up anyway. I can care less how much they make/earn, but they need to be smaller again. What is sad, they took the large amount of money from TARP, then they also (all of them) used part of the 7.7 Tril bail out of tax payer money. Then what. They lay off tax payers. What kind of fair is this. NO MORE BAILOUTS.

[cvermeulen9]

06:14 PM on 12/28/2011

I agree but they paid it all back with interest except for a very few that will have it paid back in the near future with interest.

[westytx]

11:00 PM on 12/28/2011

payng the loan back with interest WASN"T the purpose of the TARP money......it was to equalize the banks risk and take care of subprime mortgages that were in default.

Anybody that thinks that these Wall Street Redistributors of Wealth are "saintly" because they paid back a loan, doesn't understand what CAUSED the economic meltdown, how the banks got legislation changed to create 2BIG2FAIL under GOP majority, and how they were SUPPOSED to help out the American mortgage holders that were upside down.

[gov111w]

06:48 PM on 12/28/2011

The Gov't made a huge profit on Wall Streets end of Tarp...most of it 90% + has been repaid with big time interest to boot...stop all the complaining about tarp..it was the most financially sound thing the Gov't has done in years and years.

[westytx]

11:04 PM on 12/28/2011

Stop acting like TARP was supposed to ONLY save the banks.....

It was supposed to shore up the bank's risk (that they ILLEGALLY chose to ignore those rules) and to help Americans with upside down subprime loans recover from foreclosers. Instead, they used the money to buy MORE financial companies, making them TWICE 2BIG2FAIL.

[Box500]

02:51 PM on 12/30/2011

Oh? Are you counting the taxpayer giveaway in the form of 0% loans from the Fed to the banks then lent back to the govt in the form of treasuries? Didn't think so.

[Birdman 49]

03:53 PM on 12/28/2011

Why all the layoffs anyway. they have been bragging how much money they have been making since the bailouts. So why the layoffs?

[cvermeulen9]

06:16 PM on 12/28/2011

Because they see that they have to pay more taxes and are gearing up to do just that. Everybody wants the rich and big business to pay thier fair share and cut out deductable allowances, so thats what they are doing. Great Huh?

[vippy]

01:01 PM on 12/28/2011

...and the layoffs continue and yet we hear the media brainwash us to think we are on the way up.  Schools and government is still laying off come the new fiscal year.

[cvermeulen9]

06:18 PM on 12/28/2011

You know you cant trust the media! They pander thier own stuff, what ever the current owner believes is what the media puts out!

[FancyAmerican]

12:19 PM on 12/28/2011

"Job creators."

Place all of the power and wealth in a few, and you allow them to control everything, including your life and future.