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To: Chispas who wrote (88104)	7/22/2002 1:58:10 AM
From: Chispas	Respond to of 116764

The little Dutch boy only had 10 fingers to put into the dyke... Whew!, I sometimes wonder how many 'fingers' are needed NOW... ___________________________________________________________________________ MORGAN PLANS CUTS By ERICA COPULSKY July 22, 2002 -- Layoffs at Morgan Stanley & Co. have been a long time coming. Now they're just around the corner. Over the next several weeks, the white-shoe firm will be drawing up plans for a new round of job cuts in its investment-banking division, sources close to the firm told The Post. The operating committee of Morgan's investment banking group, led by Tarek Abdel Meguid, began holding preliminary meetings last week to address the need for layoffs amid the prolonged market slump, sources said. Morgan officials have not yet determined how deep the cuts will be. However, sources said Mo rgan will likely start telling department managers to begin assembling lists of layoff candidates as the firm seeks further cost-cutting measures to bring expenses in line with revenues, sources said. Morgan has roughly 1,300 bankers. Some Wall Street sources expect layoffs to be targeted heavily at the firm's senior-level bankers, who can't produce enough revenues in the current market environment to justify their eye-popping paychecks. In good years, managing directors, the highest-ranking bankers behind senior management, typically make at least $1 million in total pay. Some command pay packages of $5 million to $10 million or more. By cutting some of the firm's senior-ranking bankers, the firm could save as much as $20 million to $30 million, some recruiters say. A Morgan spokesman declined to comment. The expected layoffs at Morgan come during a slowdown in mergers and stock underwriting activity that has forced several Wall Street firms to begin downsizing operations. In recent months, securities firms including Merrill Lynch & Co., J.P. Morgan Chase and Credit Suisse First Boston completed a round of layoffs that put hundreds of bankers out on the pavement. However, the move marks a striking reversal for Morgan Stanley, which has tried to buck the trend by resisting layoffs. While a number of other retail-oriented firms - including Merrill and Charles Schwab Corp. - have reduced headcount by 22 percent or more in the last year, Morgan Stanley has done only minor cutting. According to brokerage analysts, Morgan Stanley has said that it has resisted cuts because it is focused on building market share, and maintaining current headcount levels is a key part of the strategy. In past market downturns, Morgan made a point of not cutting and gained ground on its rivals. Wall Street executives say that unless demand for banking services picks up soon, Morgan will not be the only securities firm headed for a round of cuts. Already, bankers at Goldman Sachs Group and Bear Stearns Cos. are expecting at least another round of pink slips to be handed out before bonus season. Merrill Lynch, for example, eliminated 15,000 jobs in 2001 and said it will continue to cut jobs as necessary. For more information and headlines on this company CLICK HERE