According to a published report in Bloomberg.com, Morgan Stanley plans to lay off up to five percent of its work force during the remainder of 2008. These layoffs were driven by Morgan Stanley’s recently announced quarterly losses, which were the first in its history as of a publicly-traded company. Morgan Stanley posted a $3.6 billion loss in the quarter ending March 31, 2008. The firm has already laid off 3,000 workers since October 2006.
Morgan Stanley CEO John Mack predicted in April that the credit crisis caused by the subprime mortgage and real estate market collapse would last “a couple of quarters” longer and that it was going to be “a difficult year for the Street.”