Saturday, March 22, 2008

Goldman Sachs to cut up to 15 pct of staff - NY Post

Goldman Sachs Group Inc plans to shed up to 15 percent of its work force, from its capital markets division and related support staff, the New York Post said on Friday.

Citing sources familiar with the matter, the Post said the the cuts are expected to come in the firm's capital markets division, which includes investment banking, debt and equity underwriting and merger advice.

A Goldman representative could not be reached for immediate comment.

The job losses would be in addition to cuts that Goldman announced in January, the paper said.

In January, the company said it would cut five percent of its workforce, with details to be announced by March.

Employees were first notified about the cuts on Monday, with most of them taking place by the end of March, the Post said. It said Goldman employs about 32,000 people.

U.S. financial services companies have eliminated thousands of jobs since the middle of 2007 as a credit crunch once concentrated in subprime home loans broadened, hitting firms throughout the industry.

Goldman Sachs said earlier this week that its first-quarter earnings fell 53 percent to $1.51 billion, or $3.23 per share, as $2.5 billion of losses on loans and other assets offset solid trading results.

1 comment:

Anonymous said...

Its a shame for Goldman not to be able to accept the troubles it is facing so as to appear financially stable. And for the Fed to reach out to these firms in the event of such crisis that they themselves created, is even a bigger shame. For the mess they created, they cut jobs of those who are not responsible for what has happened. At least Citi, had the decency to let go its CEO when the its market shares fell drastically, but look at what Goldman does ... strategically cut down jobs from the bottom .... if you ask me, LIoyd blankefien should be the first to lose his job, but instead he gets a fat bonus to take home .. now that is the reward of loyalty ..