Deeper Layoffs Reported at Goldman Sachs
Goldman Sachs reportedly plans deeper job cuts in capital markets and related support groups, beyond its annual practice of firing the weakest 5 percent of performers.
Wall Street's most profitable investment bank is set to cut up to 15 percent of the capital markets staff, the New York Post reported Friday. The story also says that Citigroup plans to cut 2,000 more trading and investment banking jobs than the 4,200 disclosed in January.
At Goldman, "the cuts are expected to come in the firm's capital markets division, which includes investment banking, debt and equity underwriting and merger advice," the story says, citing unnamed sources "familiar with the matter." Employees were first notified about the cuts on Monday, the paper adds.
Discussing Goldman's first-quarter earnings earlier this week, the company said investment banking revenues are still declining, especially in the U.S. CFO David Viniar said overall headcount will grow slightly this year - primarily outside the U.S.
Citi, meanwhile, now expects to eliminate about 10 percent of the 60,000 jobs in its securities division, according to the Post story that cites an unnamed source there. Citi's reductions are occurring primarily this month and involve positions in New York, London, Asia and Europe, the paper says.