(Reuters) – Morgan Stanley is “maniacally focused” on cutting costs apart from compensation and is on track to reduce expenses by $500 million this year, Chief Executive James Gorman said on Tuesday.
Gorman, speaking at a conference in New York, also reiterated Morgan Stanley’s plans to reduce costs by $1.4 billion annually over the long term.
“We are maniacally focused on non-comp expenses,” said Gorman.
He said the investment bank would achieve those cost-cutting goals in part by merging data centers and merging wealth-management offices, which would reduce real-estate and other non-compensation costs.
The bank is also monitoring the size of its overall payroll for possible job cuts as revenue remains under pressure from a weak market environment, he said.
“We are very, very focused on that, obviously, in this environment,” said Gorman.
Morgan Stanley cut 2,925 jobs between the first quarter of 2011 and the first quarter of this year.