Morgan Stanley Exiting Solar Business with Fixed Income Cuts
Morgan Stanley is winding down a group that develops and structures North American solar projects as part of a plan to cut up to 25 percent of jobs in its fixed income business, people familiar with the matter said on Wednesday.
A spokesman at Morgan Stanley (MS) declined to comment.
Morgan Stanley is cutting around 1,200 workers worldwide, including around 470 front office employees in its fixed income business, a source told Reuters on Tuesday.
The people requested anonymity because they are not authorized to speak about the matter publicly.
The bank has scaled back its commodities business, including its solar group, in the last few years, under pressure under pressure from regulators to reduce risk.
U.S solar installers and developers like SunEdison Inc have become less popular with investors this year because falling oil prices could slow the adoption of renewable energy sources.
Morgan Stanley will take a $150 million charge in the fourth quarter related to the job cuts, the company said on Tuesday.
Morgan Stanley reported a 42 percent decline in adjusted bond trading revenue in the third quarter, one of its worst since the financial crisis.
Morgan Stanley Chief Executive James Gorman has been focusing on expanding equities trading and wealth management as stricter regulations and capital requirements make it more costly to trade bonds.
Morgan Stanley agreed in May to sell its physical oil business, the largest and oldest on Wall Street, to Castleton Commodities International.
(Reporting by Olivia Oran in New York)
