Morgan Stanley is reported to be cutting 2% of staff. This is according to CNBC sources.

Earlier today, Pepsi announced they were cutting staff as well. The layoff contagion can beget other layoffs as corporations question their own hiring and staffing levels. Like with the hot market of the last few years where companies were fighting each other for staff, the pendulum can swing the other way as well.

The issue with this cycle is the participation rate and available workers are less. However, companies seem to be more comfortable with a trim of staff to prepare for the expected slowdown.