Goldman cuts 50 jobs in revamp
Goldman Sachs cut fewer than 50 jobs last week to trim expenses as the bank's revenue prospects worsen, a person familiar with the matter said.
The reductions included some managing directors, the second-highest position at the firm after partners, said the person. The New York Times reported on the cuts yesterday.
Goldman Sachs, the fifth-biggest US bank by assets, employed 32,400 people at the end of March, down from 35,400 a year earlier, according to the New York-based company's most recent quarterly earnings report.
The firm is expected to earn $2.29 a share in the second quarter, according to the average estimate of 25 analysts surveyed by Bloomberg. That's a decline of 42pc from the preceding three-month period.
Edward Najarian, an analyst at International Strategy & Investment Group, lowered his estimate for Goldman's second-quarter earnings per share to $1 from $2 because he expects the firm's revenue to drop 41pc from the first quarter to $5.8bn, according to a research note.
Goldman appointed 261 people to managing director last year, according to an internal memo. That was a decline of 19pc from a year earlier, when a record 321 people were promoted to that level.