(Reuters) - Morgan Stanley announced Thursday the elimination of 1,600 jobs in the first quarter of 2012 to reduce costs in a difficult situation, a move that boosts the capacity to Wall Street.
This downsizing will affect all hierarchical levels and all geographic areas, said spokesman Mark Lake.
Goldman Sachs, JPMorgan Chase, Bank of America and Citigroup have already announced their plans to cut thousands of jobs by the end of the year.
Morgan Stanley had limited layoffs to hundreds of under performing financial advisers this year, but now extends the cuts to the bank and trading.
The new job cuts represent less than 2% of the bank's September 30.
According to analysts, Morgan Stanley will publish a loss in the fourth quarter due to a special charge of $ 1.2 billion announced by the bank this week and linked to an amicable agreement with the mono line MBIA.
Even without this charge, the bank should have posted a quarterly profit of only 15 cents per share, predicts Richard Staite, an analyst at Atlantic Equities. At the same time last year, MS had a profit of 41 cents per share.
To 3:50 p.m. GMT, the action progressed Morgan Stanley 0.79%, outperforming the S & P financials (0.39%)
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