Morgan Stanley Smith Barney starts a round of staff cuts

Morgan Stanley Smith Barney starts a round of staff cuts
Executives at Morgan Stanley Smith Barney have begun a round of layoffs in a bid to cut costs resulting from the massive merger of the two firms, which was completed last month.
JUL 16, 2009
Executives at Morgan Stanley Smith Barney have begun a round of layoffs in a bid to cut costs resulting from the massive merger of the two firms, which was completed last month. It is unclear exactly how many employees at the New York-based brokerage firm will be affected by the job cuts, but a spokeswoman for the company said that none of its 18,500 financial advisers will be let go. People who serve in “mostly support functions” will be affected, said spokeswoman Christine Pollack. A Smith Barney employee, who asked not to be identified, said that several directors and managing directors will also be let go Ms. Pollack declined to comment on the details of the staff reductions, except to say that the cuts will be split “roughly evenly” between employees who came from Morgan Stanley and Smith Barney. Morgan Stanley and Smith Barney completed their combination on June 1. Company officials noted at the time that they expected to achieve about $1.1 billion in cost savings from the integration. News of the job cuts was first reported this morning on FundFire.com.

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management