Goldman Sachs sacks 3,200 employees
New
York,
Nov
7:
Around
3,200
employees
og
Goldman
Sachs
Inc
have
been
shown
exit
doors.
The
decision
was
taken
by
the
Company
earleir
to
slump
10
per
cent
of
firm's
global
work
force
amid
declining
markets,
sources
said
on
Wednesday,
Nov
4.
Goldman
Sachs
has
declined
to
comment.
Two
weeks
ago,
it
was
reported
that
Goldman
planned
to
cut
10
percent
of
its
staff,
or
almost
3,300
jobs,
reflecting
the
weak
economy
and
a
cut
back
in
proprietary
trading.
The
cuts
are
an
about-face
for
a
company
that
as
recently
as
Sep
insisted
its
headcount
would
rise
this
year.
The
latest
cuts
reduce
headcount
to
the
lowest
since
2006
and
hit
every
businesses
and
region.
The
investment
bank
has
managed
to
avoid
the
kind
of
losses
from
mortgages
and
corporate
loans
that
have
hobbled
rivals,
yet
Goldman
still
has
suffered
from
the
steep
decline
in
merger
and
underwriting
activity,
as
well
as
plunging
prices
for
stocks
and
other
investments.
Goldman has quietly and slowly cut jobs all year. The bank laid-off hundreds of M &A support staff and junior bankers in June due to slowing markets, following a round of leveraged lending and mortgage securities cuts in April.
Early this year, Goldman cut 1,500 people, or 5 percent of its staff, following 2007 performance reviews.
Goldman converted last month to a bank holding company supervised by the Federal Reserve and then raised $10 billion from Berkshire Hathaway Inc.
These moves, together with a pending $10 billion investment by the US Treasury, will create a more stable but less profitable company.
Merrill Lynch analyst Guy Moszkowski last week predicted Goldman will report a fourth-quarter loss, its first since going public in 1999.
OneIndia News