* Fox says firm runs layoff scenarios
* Spokeswoman denies major layoff plans for now
* Financial advisers previously targeted
NEW YORK, July 13 Morgan Stanley (MS.N) might
lay off more workers than the few hundred underperforming
financial advisers it previously said were at risk of being
fired, according to Fox Business Network.
The news network said Morgan Stanley could cut "possibly
thousands of jobs," citing a source with direct knowledge of
"We are constantly evaluating the market conditions to
ensure we are right sized," Morgan Stanley spokeswoman Mary
Claire Delaney wrote in an e-mailed statement. "We have said we
currently have no plans for a major (reduction in workforce)
other than 300 or so underperforming FAs, and that remains the
Banks with big Wall Street trading operations have been
scrutinizing their staffing levels to cut costs in a weak
trading environment. Morgan Stanley has been building out its
fixed-income division in an effort to gain market share that
had contracted in the days leading up to the 2008 financial
Morgan Stanley, the only major Wall Street bank that books
more than 40 percent of its revenue from retail brokerage, had
62,494 employees as of March 31. Its wealth management area
burgeoned in 2009 when James Gorman, now chief executive of the
firm and the former head of Merrill Lynch's retail brokerage
division, arranged for a controlling interest in Citigroup's
Smith Barney business.
Morgan Stanley laid off about 300 financial advisers in the
first quarter of 2011.
Chief Financial Officer Ruth Porat recently said it may
bring wealth management staffing levels down further as the
bank further integrates Smith Barney and cuts overlap.
The Fox Business Network report did not say which division
would be targeted by potential layoffs.
(Reporting by Lauren Tara LaCapra; edited by Jed Horowitz)