Around the same time Morgan Stanley (MS)’s better-than-expected earnings report was posted, the bank’s CEO told CNBC that he believes they are finished with job cuts. The bank eliminated 1,600 jobs last week and this week in its latest round of cuts.
Morgan Stanley (NYSE:MS)’s CEO tells CNBC that he believes the bank is done cutting jobs, at least for now. Shares of the bank’s stock are up 6 percent in trading this morning, after a better-than-expected earnings report. The stock has risen about $2 per share since December.
Morgan Stanley (NYSE:MS) imposed an informal hiring freeze in December and considered laying off more employees. The bank cut 7 percent of its jobs in the second half of 2012 after a dismal earnings report.
Today, CEO, James Gorman was interviewed on CNBC, right around the time the bank’s earnings report hit. He confirmed that they had completed their latest round of 1,600 job cuts last week and this week. In all, the bank has eliminated about 6,000 positions over the past year, and Gorman said he believes they are finished laying off workers, calling it “an unpleasant thing to go through.”
“I believe we are done,” he said. “I feel very comfortable with where we are as an organization.”
Morgan Stanley (NYSE:MS) beat expectations for its fourth quarter earnings, reporting $507 million in profits for the quarter. A year ago the bank reported $250 million in losses for the same quarter. It reported almost double the revenue in institutional securities in a year, rising to $3.5 billion in the fourth quarter from $1.9 billion in the fourth quarter of 2011.
In a company statement, Gorman said, “After a year of significant challenges, Morgan Stanley (NYSE:MS) has reached a pivot point. Our firm is now poised to reach the returns of which it is capable on behalf of our shareholders.”