Goldman Sachs Moving Jobs to Brazil, Singapore
It was lauded for weathering the American financial crisis better than its peers, and now it's moving jobs offshore. FOX News is reporting that Goldman Sachs will be adding 1,000 positions in its Singapore branch.
"They are expanding overseas, the same type of high-paying jobs they are going to cut here in the U.S.," the FOX News source says.
The moves are part of Goldman's plan to cut $1.24 million in costs over the next year. The result will be "a significant, though still undetermined number of layoffs across its operations," the source said, though the U.S. offices are expected to suffer the worst.
No stranger to public scorn, the bank that's been referred to as a "vampire squid" has embarked on an unusual public relations tour ahead of the Singapore switch; Goldman is approaching individual members of Congress in hopes of softening the blow of moving jobs overseas.
Such a "juxtaposition," as it's being referred to, promises to challenge the image of the bank that produced such former U.S. Secretaries of the Treasury as Robert Rubin and Henry Paulson.
The restructuring is being chalked up to a response to new regulations spelled out in the Dodd-Frank Wall Street Reform Act. The law mandates banks to keep larger amounts of capital reserves on hand so that Washington need not be called on for a bailout.
The announcement is just part of a recent increase in Goldman's international team.The bank also announced plans to expand its Brazilian workforce by 20 percent in view of the South American country's boom.
Goldman has only been running a full-service bank in Brazil since 2009, and currently has 200 employees on hand. The growth will leave the number at roughly 300.
"We have robust growth plans for every product and division," says Valentino D. Carlotti, the outgoing group president, according to a Bloomberg report.
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