Morgan Stanley will eliminate 1,200 jobs, including 470 fixed-income and commodities traders and salespeople, as Wall Street’s outlook for its debt markets businesses dims.

The cuts, which comprise about 2% of Morgan Stanley's total workforce, will also target hundreds of back-office employees who support the New York firm's fixed-income division, a person familiar with the matter said. The Wall Street firm will take a $150 million charge in the fourth quarter to cover severance expenses, a Morgan Stanley spokesman said