Morgan Stanley, the US investment bank, began shedding 1,500 jobs this week as Wall Street stepped up the pace of cuts in the face of a global capital markets slump.
Morgan Stanley told employees on Tuesday that the jobs would be lost in the company's securities and investment management units, about 4% of jobs in those units.
The job losses will be concentrated in the US, with some in Europe and a minimal number in Asia. Morgan Stanley's brokers and employees of its Discover credit card business are not being affected.
Thousands of investment banking jobs are being cut at firms including Goldman Sachs and Citigroup's Salomon Smith Barney unit. More reductions are likely, with Merrill Lynch expected to shed 200 investment bankers this week and Credit Suisse First Boston, which cut 2,500 jobs after its acquisition of Donaldson Lufkin & Jenrette, axing a further 350 in support functions.