NEW YORK, Thu Jan 10, 2013 — Morgan Stanley plans to slash 1,600 jobs in what may be just the beginning of a new round of layoffs at large investment banks, this time driven by a deeper reassessment of Wall Street businesses in the face of new regulations and capital standards.
Morgan Stanley, the sixth-largest U.S. bank by assets, plans to begin letting go of the employees, many of whom work in its securities unit, starting this week, two people familiar with the matter said on Wednesday.
A third person who has been involved with plans to cut staff at Morgan Stanley and other large banks said that Morgan Stanley’s cuts had been in the works for months, and that more are expected in the future.
Large global investment banks have been cutting staff for the better part of five years, when the financial crisis pegged to the U.S. housing market began to seize up markets.
Firms previously focused their job cuts on areas where activity had screeched to a halt, such as securitization of mortgages, or that were explicitly banned by new regulations, such as proprietary trading.
But banks are now making strategic decisions about businesses in grey areas where management teams do not see major profit potential, or realize that their individual banks are not competitive, the third source said.
“It’s hard to look at yourself in the mirror, and say: ‘I’m not good at this,'” said the source. But now that management teams are coming to those realizations, he said, they are beginning to make strategic decisions to exit businesses and cut more staff.
NEW YORK, Wed Dec 12, 2012 — Avon Products Inc. said it will cut about 1,500 jobs globally and will exit the South Korea and Vietnam markets as part of a turnaround plan announced in November.
Last month, the world’s largest direct seller of cosmetics slashed its dividend by nearly 74 percent and announced measures to cut hundreds of millions of dollars in costs in the next few years as the company continued to face difficulties in key markets.
Avon estimated the latest round of restructuring would cost in the range of $80-$90 million before taxes, of which about $50 million-$60 million is expected to be recorded in the fourth quarter of 2012. The company expects these steps will account for about 20 percent of the total targeted savings.
Higher product costs, unfavorable exchange rates and ongoing difficulties in key markets like Brazil, the United States and Russia, continued to bedevil Avon in the third quarter and it reported a sharp plunge in profit for the period.
Avon said expects to communicate additional steps toward the cost savings goal as it progresses.
CONSHOHOCKEN, Pa., Tue Oct 9, 2012 – NuPathe Inc. said it would cut half of its workforce to reduce costs and focus on the regulatory approval of its experimental migraine patch.
The company said it will reduce expenses related to the marketing of the pain patch and on earlier-stage drug candidates.
NuPathe has 37 employees, according to Thomson Reuters data.
It also plans to delay the application for its experimental treatment for schizophrenia and bipolar disorder until it finds a partner.
NuPathe is trying to raise about $28 million in a proposed financing and expects the cost cut initiatives, along with the proceeds, to be sufficient to fund operations into the fourth quarter of 2013.
The company, which has a market capitalization of about $55 million, had cash and cash equivalents of $7.5 million as of June 30.
In July, the U.S. Food and Drug Administration accepted a resubmission of the company’s approval application for the migraine patch, called NP101.
NuPathe shares closed at $3.71 on Monday on the Nasdaq.