Goldman Sachs to Slash 1,000 Jobs as Revenues Slow
Goldman Sachs Group, one of Wall Street's largest employers, plans to cut about 1,000 jobs as part of a $1.2 billion cost-cutting measure, the company said Wednesday.
The job-cuts announcement followed Wednesday's release of Goldman's second-quarter earnings, which showed that revenues derived from the trading of currencies, debt and commodities fell 63 percent -- more than twice the drop recorded by Goldman's rivals, Bloomberg News reported.
Goldman, which employs about 35,500 people, said revenues derived from the trading of currencies, debt and commodities plummeted 63 percent in the three months ending June.
The job cuts will be "broad based" and will affect employees of both junior and senior ranks, the news service reported. Goldman's rapidly growing business in developing nations such as China, India and Brazil, however, won't be affected by the cuts.
As many as 230 of the layoffs are expected in New York State, The New York Times reported. Staff who remain are likely to collect smaller annual bonuses unless Goldman acts to shake up its game plan.
Goldman's revenue woes are likely the product of management decisions to pursue a more cautious path with investments. Rather than deftly navigating the market, the Times noted, Goldman sought to protect itself from potential volatility and take safer positions.
Unfortunately for its workers, Goldman's strategy backfired, and hundreds of them now face an uncertain future.
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