December 1, 2023

Investment Banking

Let Your Investment Banking Do The Walking

Morgan Stanley cuts 70 European dealmakers in latest lay-offs


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Morgan Stanley has cut around 70 dealmakers in Europe as part of a fresh round of lay-offs that has hit the Wall Street bank this week.

The US bank’s latest job cuts will hit 3,000 roles globally across most of its key divisions, as it embarks on its second round of redundancies within the space of six months.

Managing directors within its investment banking and global capital markets teams in Europe, the Middle East and Africa were informed of job cut decisions on 22 May, according to people familiar with the matter.

At the senior level, approximately 10 managing director dealmakers were cut in the region, the people added.

Cuts across Morgan Stanley’s Emea investment banking team amount to around 70 people — or 5% of headcount in the region — and staff below managing director have been told 24 May. The bank was gearing to cut 7% of its dealmaking unit in Asia-Pacific, or 40 people, according to a report by Bloomberg.

A Morgan Stanley spokesperson declined to comment.

READ Morgan Stanley plans 3,000 more job cuts amid dealmaking drought

In Emea, senior equity capital markets bankers were badly affected, according to two people close to the matter, but cuts have hit all sector teams as well as M&A dealmakers and range from first-year analysts to managing directors.

Angus Millar, who heads UK ECM and Marina Shchukina, head of fintech and financial institutions ECM, were among the senior departures.

Morgan Stanley currently ranks eighth in the investment banking fee league tables in Emea with $195m, according to data provider Dealogic. This compares with its third place at the same point in 2022, when it brought in $462m.

Globally, investment banking fees have declined 31% to $24.1bn so far in 2023, according to Dealogic.

Morgan Stanley rival Goldman Sachs moved swiftly with job cuts in January, stripping out around 3,200 roles globally across all business lines. Around 50 dealmakers were hit by the job losses in Emea, FN reported.

The ongoing deal drought has prompted banks including Barclays, Deutsche Bank and Citigroup to trim investment bankers. Independent investment bank Lazard also cut 10% of employees after a disappointing first quarter in an unusual move for the firm.

To contact the author of this story with feedback or news, email Paul Clarke

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