Morgan Stanley is planning to cut its broker training
program, saying many of the trainees are "not tracking toward long-term
success," according to published reports.
The firm plans to cut the training program by half, including cutting
its current group of trainees from 1,000 to 500, according to the New
York Times and the Wall Street Journal.
An internal memo cited by both newspapers quoted Morgan Stanley's new
wealth-management chief, James Gorman, as saying each year's classes
will be reduced to about 700 to 1,000, from a currnet size of 1,500 to
2,000. A revised program will be introduced in the second half of the
year, according to the memo.
Many of the 7,000 brokers trained during the past four years "are
struggling to establish viable wealth-management practices," Mr. Gorman
added, and the 500 trainees being cut are "not tracking toward
long-term success in the business," according to the published reports.
But he said the firm is "committed to the long-term growth of the sales
force."