Morgan Stanley in Layoff Snafu
On Wall Street, May, 2001
Started by what seems to have been a misinterpretation by a journalist, Morgan Stanley saw its stock price plunge last month after The Wall Street Journal reported the firm was considering a layoff of up to 1,000 brokers.
On April 4, the newspaper reported that the firm - which also last month formally dropped Dean Witter from its name - might axe 7 percent of its sales force in a move to save $1 billion in costs. A spokesman for Dow Jones, publisher of the Journal, said the source for the story was a senior executive at Morgan Stanley, but would not name the person.
Instant Reaction
Shares fell by as much as 10 percent on the news. If the report were true, the firm would be laying off many of its revenue generators, which would be highly unusual. But before...
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