Morgan Stanley plans to cut about 2,000 jobs, or 4% of its entire workforce, as part of a renewed focus on acting as a financial intermediary.

The cuts will be sharpest in the bank’s Institutional Securities Group, which comprises sales and trading, investment banking and global capital markets.

Colm Kelleher, Morgan Stanley chief financial officer, outlined plans yesterday for a 10% headcount reduction in the arm.

The bank is also targeting a 9% staff cut in the firm’s asset management division.

Although Morgan Stanley does not break down the number of employees in each unit, a person familiar with the matter said the total number of cuts would be about 2,000 from the global employee total of 46,300. This cut follows a staff reduction of 4,400 in June.

Financial Times