Mitsubishi UFJ Morgan to Cut Jobs? - Analyst Blog

Mitsubishi UFJ Morgan Stanley Securities Co., a joint venture between Mitsubishi UFJ Financial Group Inc. (MTU">MTU) and Morgan Stanley (MS">MS), is planning to right-size its company by trimming its payroll. The company would offer an early retirement program from February, according to a report in the Nikkei business daily. The job cut comes on the heels of difficulties pertaining to earnings generation, which the company is facing in a lackluster stock market environment.

The payroll trimming in February would target 200–300 jobs, representing about 3–4% of its total workforce. Employees aged 49–57 with at least 5 years of service in the company would be offered the early retirement option. Those who take part in this program would be given a severance package. Besides, the company would also pay to support their job-hunt.

Depending on the response the company gets through the number of sign-ups for the program in February, it could again offer this retirement program in autumn or later.

The news of job retrenchment is not new to Wall Street firms. The financial crisis has forced many of the Wall Street biggies such as Bank of America Corp. (BAC">BAC) and Citigroup Inc. (C">C) to reduce their workforce.  Several other companies have also joined the bandwagon and opted for rightsizing of their workforce.

Though situations have slightly improved based on gradually increasing consumer spending, market stability still remains elusive. Also, in a situation of extreme competition and tight budgets, retrenchment remains an easier option.

 
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