FAST FIVE: To Boost Morale, Citi And Morgan Stanley Halt Layoffs With Banker Bonuses Set To Tumble
Morgan Stanley on Thursday pledged to not cut any jobs this year, according to a memo seen by Reuters, as the Wall Street bank sought to reassure worried employees during the coronavirus pandemic.
Citigroup Chief Executive Michael Corbat also ordered a suspension of any planned layoffs, a source told Reuters.
Earlier this week, Citigroup announced it would begin handing out $1,000 bonuses to certain employees and has told workers that sick days taken during the pandemic won't count toward paid time off.
“The securities industry had a good year in 2019, but the serious damage that COVID-19 is inflicting on financial markets and the global economy will sharply reduce industry profits this year,” New York State Comptroller Thomas DiNapoli said in a statement on Tuesday, referring to the disease caused by the coronavirus.
DiNapoli warned that the city and state will likely need to fill gaps in their tax base as the cost of the coronavirus to the securities industry will result in lower taxes paid for 2020.