Goldman Sachs downgraded Morgan Stanley's stock and recommended more job cuts, but brokers won't be affected, a Morgan Stanley spokesperson says.

About 1,800 people have been let go by Morgan Stanley this year, yet none have been brokers. And John Schaefer, the firm's president of the Individual Investor Group, "has no plans" to change that, a firm spokesperson says.

Morgan Stanley's shares fell nearly 5.5% after Goldman Sachs discouraged investors from buying the stock Monday because the firm is among the "most exposed" in businesses that have fallen off. Goldman analyst Richard Strauss dropped his rating on Morgan Stanley to ``market perform'' from ``recommended list'' and says the firm should slash expenses further.