Morgan Stanley exec Andy Saperstein confirms layoffs and says he'll let succession process run its course

Morgan Stanley (MS) executive Andy Saperstein on Wednesday confirmed reports from early May that the bank plans to lay off about 5% of its workforce, or about 3,200 people, in what he said was a "painful and difficult" process amid a challenging deal environment. So far in the second quarter, institutional securities trading and client activity remain muted, along with investment banking. Saperstein said the bank sees an opportunity to continue to grow its wealth-management business ahead of industry expansion rates. Deposit outflows that sped up during tax season in April have been moderating, he said. Sapersteindeclined to provide any updates on the process for choosing a new CEO at the investment bank after current CEO James Gorman said on May 19 he plans to step down within a year. Saperstein, co-president and head of wealth management at Morgan Stanley, is one of three leading contenders for the job, along with Daniel Simkowitz, head of investment management and co-head of corporate strategy, and Edward "Ted" Pick, co-president and head of institutional securities and co-head of corporate strategy. Saperstein said the three executives all have had "a lot of success and we genuinely like each other," adding that the trio is "focused on doing our jobs" and that the selection process is up Morgan Stanley's board of directors. "We're all really comfortable letting the process run its course," Saperstein said at the Bernstein Strategic Decisions Conference.

-Steve Gelsi

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05-31-23 1558ET

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