The City of London is bracing for fresh job cuts after Morgan Stanley became the first investment bank to swing the axe this year.
The Wall Street investment bank is cutting 1,600 staff, with about half the reductions coming from outside the US, the Daily Telegraph reports. The bank employs several thousand people in the City.
Chief executive James Gorman warned late last year that the investment banking industry still had "way too much capacity and compensation is way too high".
The cuts will come from Morgan Stanley's investment banking business, with more expensive senior employees among those most at risk.
Gorman's move to cut so early in the year is a sign of the pressure that investment banks remain under more than four years since the financial crisis.
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