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Banking giant Morgan Stanley making “modest” staff reductions as boss praises Twitter owner Elon Musk

Morgan Stanley

Morgan Stanley is eliminating a few jobs around the world as weak deal markets impact Wall Street profits.

CEO James Gorman said: "Some people are going to be let go.

"We're making some modest cuts all over the globe. In most businesses, that's what you do after many years of growth."

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The exact number of terminated roles are not announced yet.

As US inflation stays high, businesses have postponed dealmaking.

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This has placed pressure on investment banks, which made record profits from mergers, takeovers, and stock launches last year.

Gorman also lauded Tesla CEO and new Twitter owner Elon Musk, a bank client, in a wide-ranging interview.

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Mr Gorman said: "I wouldn't bet against Elon Musk. 

"He's probably, along with Steve Jobs and Bill Gates and one or two others, the most interesting entrepreneur of last 50 years. 

“Who would not want to do business with a person who has that kind of capability?”

Morgan Stanley was one of the lenders who contributed $13 billion to Musk's $44 billion Twitter purchase.

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It was reported that banks had abandoned efforts to sell the debt to investors due to uncertainties surrounding Twitter's fortunes and losses.

While Musk's management model has caused worries among content moderation advocates on one of the leading social media sites, he has also received backing among C-suite executives.

Gorman said Morgan Stanley aims to pull in $1 trillion in additional money from customers every three years.

The bank intends to eventually increase assets under management to $10 trillion, he added, without naming a timeframe.

Source: Reuters

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