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Morgan Stanley’s 1,600-person layoff continues bank downsizing trend

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Investment bank Morgan Stanley (MS: 14.98 -0.20%) is the latest financial firm to announce the elimination of hundreds of staff positions.

Morgan Stanley (MS: 14.98 -0.20%) confirmed it's eliminating 1,600 staff positions globally in a reduction that will impact all job levels.

In a statement, the firm said the cuts are coming as the bank conducts its year-end performance and evaluates the appropriate size for the firm in 2012.

Morgan Stanley is following on the heels of other big banks that announced cuts in 2011.

BofA announced 3,500 job cuts in August, and some analysts have put the bank's total cuts long-term at 30,000.

Earlier this year, Brian Charles, a banking analyst with R.W. Pressprich & Co., said while there is speculation BofA will make more cuts, he does not anticipate the bank's mortgage servicing segment — an area of widespread concern — will be impacted. Charles said on the foreclosure side of the business, banks like BofA are still trying to get their arms around the influx of work in that segment, making it unlikely deep cuts will come from those areas.

Write to Kerri Panchuk.


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