Morgan Stanley to axe 1,600 jobs

Morgan Stanley, one of London's biggest investment banking employers, is to axe 1,600 staff around the world in the first quarter of next year, it announced yesterday.

The news comes a day after Crédit Agricole said it would be shedding 2,350 jobs at its global operations and adds to expectations of a tough 2012 for bankers.

Citigroup recently started a big round of job losses in London, while UBS is also wielding the axe.

Banks have been cutting back on staff levels, particularly in the areas of equities and fixed income or bonds, as the continuing eurozone crisis has hit profits hard in those divisions.

Meanwhile, bonuses are likely to be lower this year, although they are still likely to cause an inevitable furore as the rest of the country struggles amid stagnant wage rises and rising unemployment.