Morgan Stanley is to fire around 25 of its poorest-performing investment bankers.
The move follows chief executive John Mack’s recent decision to axe around 1,000 of the firm’s least productive retail brokers, and continues his stated aim to double the profits of the company in the next five years.
Mr Mack returned to the investment bank in June, when he replaced Philip Purcell, the man who forced him out in the first place.
The job cuts seem designed to induce increased productivity from the remaining staff, though they could also have the effect of opening up space for fresh blood and new talent.