Morgan Stanley’s decision to cut hundreds of jobs in its fixed income division followed a series of meetings with shareholders in which they questioned why the firm had not moved more aggressively to shed costs in the division, according to people familiar with the matter.

In one-on-one discussions and a series of group meetings arranged by analysts, money managers from firms such as Moore Capital Management, JP Morgan's asset management arm and Epoch Investment Partners peppered Morgan Stanley executives with questions starting in late October on why it had not cut expenses despite few signs of a fixed income revival, the people said.