US bank said to be taking the axe to equity research

News reports suggest Morgan Stanley is cutting equity research analysts. But for researchers in the right sectors, recruiters say there are plenty of opportunities elsewhere.

Bloomberg reports that Morgan Stanley is cutting between 50 and 60 equity research jobs in Europe and the U.S. in order to spend money on researchers to cover emerging markets such as Eastern Europe, the Middle East and Asia.

The news service sources the information to two anonymous Morgan Stanley employees who were apparently privy to a memo outlining the cuts, which it says are due to be announced today and will affect 7% of the bank's 800 equity analysts.

Many of Morgan Stanley's staff should be able to find jobs elsewhere. James Heath of Greenwich Associates, which places junior equity researchers, says demand for associate level staff remains buoyant.

Jonathan Evans, managing director of search firm Sammons Associates, says researchers covering hot sectors like specialist financials, capital goods, utilities, chemicals and retail, will have no problem walking into another job. "There are plenty of equity research jobs around at the moment, banks are hiring across the board," he says.

Axed researchers who covered sectors such as leisure, building, construction and luxury goods may have a harder time of it, says Evans. "They could change sector, go into industry or consultancy, jump to the buyside, or open a restaurant in Pimlico," he suggests.