Morgan Stanley is to cut 1,600 jobs across its global workforce in a move that could result in the loss of hundreds of jobs in the City of London.
The Wall Street investment bank will axe about 6 per cent of the bankers in its institutional securities unit due to the slowdown in corporate lending and merger and acquisition activity.
The company is expected to tell staff about the cuts over the next few weeks. Senior bankers, managing directors and executive directors are thought to be among those in the firing line. Half of the job cuts will be made in the US, with the other half across the bank's global divisions, which include the UK.
News of Morgan Stanley's jobs cuts comes less than three months after UBS said it planned to cut 10,000 jobs. Deutsche Bank and Nomura have already announced large job cuts, while other banks are expected to add to the tally.
Mr Gorman has vowed to improve shareholder returns. The bank will report its fourth-quarter results next week.