Advertisement

Goldman Sachs to cut more jobs this week, report claims

Goldman Sachs Group is likely to axe jobs this week as part of an annual cull, according to Reuters on Tuesday.

Goldman Sachs Group is likely to axe jobs this week as part of an annual cull, according to Reuters on Tuesday.

The multinational investment banking firm normally reduces its workforce by 5.0% each year around this time to weed out the underperformers.

The company has over the past two years culled jobs by 9.0%, or 3,300.

Advertisement - Article continues below

In the next round, sources told the news agency Goldman's equity trading business faced the biggest cuts where volumes and earnings are weak.

Fixed-income trading at Goldman is expected to see cuts of less than 5.0% as it had better volumes this year, a source said.

Overall, cuts across the company will be roughly in line with the usual 5.0%.

However, one person familiar with the situation said it was not part of a larger cost-cutting plan.

"As market activity has picked up in certain areas, we remain focused on prudently managing expenses and allocating resources to ensure we are best able to meet our clients' needs and generate good returns for our shareholders," said Goldman spokesman David Wells, who declined to comment on layoffs.

The news comes after Goldman's new Chief Financial Officer, Harvey Schwartz, said redundancies would help banks to wield higher returns on equity for shareholders.

"I think the industry will migrate to higher returns because they will have to," Schwartz said last month.

Goldman's return-on-equity was 10.7% last year which was an improvement on 2011 but well below pre-financial crisis highs above 30%.

Shares were up 0.40% to $27.37 at 13:27 Tuesday.

RD

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

What gold, bonds and tech stocks have in common
Stockmarkets

What gold, bonds and tech stocks have in common

"Risk off" or "safe haven" assets such as gold and government bonds have been doing well lately. But so have riskier tech stocks. That seems to defy c…
10 Jul 2020
An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
Share tips of the week
Share tips

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
10 Jul 2020