Morgan Stanley Smith Barney is cutting its brokerage complexes from 118 to 86 and its non-producing branch managers from 150 to 85 as it puts its final touches on consolidating two brokerage firms that began several years ago.
The news was first reported by FundFire. A spokesperson at Morgan Stanley confirmed on Thursday that the report is accurate.
The cuts come just weeks after Morgan Stanley announced that it will streamline its total number of regions down to 12 from 16, further whittling its initial reduction of regions that happened last December.
Then reports emerged last week that new changes-possible complex eliminations, higher office production thresholds, or the elimination of staff in support and compliance roles-were imminent.
The new moves, put in place Thursday, will create larger complexes representing $150 million to $250 million in revenue. It will also increase the number of producing branch managers, to about 295 from 240, and the number of managers in charge of smaller branches, to approximately 195 from 150.
The moves could result in the displacement of some existing leaders, who will be eligible for new managerial or advisor roles.
Morgan Stanley formed a joint venture with Citigroup in 2009, and currently owns 51% of that brokerage business. This latest wave of consolidation is expected to cap off the integration process and last for the foreseeable future, the report said.