New York : Morgan Stanley slashed about 200 brokerage support staff last week as the largest US wealth manager further consolidates people and offices acquired from Citigroup's Smith Barney one year ago, a person familiar with the situation said.
At the same time, Morgan Stanley is expanding staff that works with ultra-wealthy customers, adding 150 private bankers, as well as 35 new securities sales and trading staff dedicated to working with the brokerage arm, the person familiar said.
Several hundred jobs in support areas were cut, including marketing and product support, primarily in the brokerage's headquarter offices, the source said.
Morgan Stanley ended the first quarter with about 18,140 financial advisers and 870 offices, mostly in the United States.
Independent firms
Since Morgan Stanley acquired control of Smith Barney on May 30 last year, thousands of brokers have departed for rivals or launched independent firms.
Morgan Stanley also is consolidating 136 groups of branches, known as "complexes," down to 120. Of the 16 groups eliminated, one-third did not have a manager in place.
The "lion's share" of the merger-related job cuts have now been completed, the source said.
No offices were closed as part of this field-management consolidation, though Morgan Stanley Smith Barney President Charles Johnston last month told reporters he wanted to trim real estate to 750 in the coming year.
These branch moves are not expected to result in job losses.
