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."