Hiring Freeze: Morgan Stanley Hasn't Hired Anyone For Over A Month
Morgan Stanley declined comments on a report from a rival network claiming the firm is considering layoffs or bonus cuts at year end.
A person close to the company says the firm has no plan to layoff any employees at year end. Having made deep cuts to headcount during the financial crisis the firm is comfortable with its employment levels in the institutional business. The source could not speak for the Salomon Smith Barney brokerage joint venture.
The source did acknowledge, having hired a net 400 employees through July, the firm has not hired any additional workers in the last month and a half. When asked why, the source says its more expensive to hire toward year end as you have to pay the employee any bonus the worker might lose coming to work at your firm. A pause in hiring maybe, the source said, a freeze it is not.
As for reports the firm is considering cutting 2010 bonuses from 2009 levels, the source said its too early to say. Talks about compensation typically gear up in October and November.
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