Morgan Stanley laid off roughly 50 workers among its mutual fund wholesaling and marketing teams this month in what some believe to be cost-cutting measures due to redundancies. Others say Morgan Stanley has made the cuts due to a new, generalist sales approach. The firm, which is based in New York, declined to comment.

An executive recruiter, who has been working with displaced Morgan Stanley staff, said that the company "announced who they were keeping and who they weren't" on May 16. "It was sad," he said. "People who were with the company a long time, excellent people, were just laid off."

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