Posted on 01/19/2016 1:36:44 PM PST by SeekAndFind
Morgan Stanley just announced fourth-quarter earnings, and it is providing detail to investors on a cost-saving plan called Project Streamline.
During a conference call, CEO James Gorman uttered a sentence that will most likely make the bank's staff shudder.
"Too many employees based in high-cost centers are doing work that can sensibly be done in LOWER-COST CENTERS," he said. "Now is the time to tackle head-on our infrastructure costs."
The mention of "lower-cost centers" most likely means the bank is looking to shift jobs overseas or to low-cost locations in the US.
His comments echo a line in his presentation, where there is a reference to optimizing the bank's location strategy.
Morgan Stanley would not be the first bank to pull such a move.
(Excerpt) Read more at businessinsider.com ...
Offshoring or BOHICA are better words.
They are HQ in New York, that might explain a lot.
This is going on in every industry. The cost pressures are enormous, especially in the Obama Great recession.
They are HQ in New York, that might explain a lot.
I think that in the not so distant future only those who are ‘wealthy’ and those who are on EBT cards will be able to live in ‘big cities’.
Frankly though, out here in the ‘sticks’ it’s not much better. In my county over 60% are on government entitlements of one sort or another. We lost another big factory to Mexico last year and we are still feeling the reverberations from that.
I believe in the next few months IBM may possibly be selling off some of it’s divisions, perhaps to foreign entities. I have already informed my boss that I will not be training any foreigners, not again.
American investors should love the idea of their financial information being offshored! /s
“I think that in the not so distant future only those who are ‘wealthy’ and those who are on EBT cards will be able to live in ‘big cities’.”
Very true, and California is essentially there - two societies, one that makes big bucks and pays big taxes, and one that lives off that money. New York City’s rent control actually does help (a bit) to protect the middle class there...otherwise they would have been driven out long ago.
“Lower Cost Centers”
Translation: Update your resumes.
Translation: Learn Hindi and Urdu.
SOB not taking a pay cut.
Morgan Stanley CEO’s Pay Rises 25%
Gorman receives $22.5 million compensation package for work in 2014
Mr. Gorman had received $18 million for his 2013 performance and $9.75 million after the firm posted a 2012 loss.
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