According to Morgan Stanley, the cuts will affect 2.6 percent of its 62,648 strong global headcount. Bank spokesperson Mark Lake said that the cuts will occur globally and will include analyst, associate, vice president, executive director and managing director levels.
Last week, Citigroup announced it would eliminate 4,500 jobs, or 1.5 percent of its global headcount of 267,000 headcount.
Swiss lender UBS also has told investors it will downsize its investment bank to 16,000 people by 2016 from the current 18,000 as the bank tries to reduce its exposure to risk.
In September, Bank of America Corp said it would cut 30,000 jobs over the next few years.
Reuters commented that these “cuts come as banks see their profitability sink amid the weak global economy and European debt crisis. Clients are holding back on trading and dealmaking activity until markets become less volatile. At the same time, the value of securities banks hold for investments, clients or market-making purposes has declined, further hitting the bottom line.”