Goldman Sachs Plans Another Round of Job Cuts

Goldman Sachs job cutsGoldman Sachs Group (GS) will begin a fresh round of job cuts as early as this week, sources familiar with the matter said on Monday, with its equities-trading business bracing for bigger cuts than fixed-income trading.

The bank usually culls out the weakest 5 percent of its employees around now. But the cuts will likely be deeper in some businesses, particularly equities trading, where volumes and earnings are weak. The number of shares traded on major U.S. exchanges so far this year is down 7.2 percent.

Fixed-income trading at Goldman, which took big hits last year but has had better volumes this year, will likely see cuts of less than 5 percent, the sources said. It is unclear whether the cuts in totality will be larger than Goldman's typical 5 percent culling across the firm.

"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 cuts underscore how even as Wall Street shows some signs of recovering, banks are looking to thin their ranks to boost profitability.

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Morgan Stanley, Bank of America Corp, Citigroup Inc, and UBS AG, have been cutting staff for the past few years, after revenue has been under pressure in multiple businesses. Regulations, meanwhile, are increasing banks' costs.

Over the past two years, Goldman has cut its workforce by 9 percent, or 3,300 employees.

Earlier this month, Goldman's new chief financial officer, Harvey Schwartz, said that laying off more workers may be the way for banks to generate higher returns on equity for shareholders. The measure is important because it shows how much profit banks can squeeze from their balance sheets.

Last year, Goldman's return-on-equity was 10.7 percent, an improvement from 2011, but still well below pre-financial crisis highs above 30 percent. Schwartz said he does not see Goldman's returns last year as "aspirational for the long term."

"I think the industry will migrate to higher returns because they will have to," Schwartz said, adding that it might be "a question of excess capacity coming out of the industry over a period of time."

More: 'Where Did My Co-Worker Go?' Stealth Layoffs Become More Widespread

High-Profile Exits

Goldman has also experienced a wave of departures of partners and managing directors, who are typically the company's biggest earners. Some big-name departures that have either occurred this year or were announced in internal memos. They include Jim O'Neill, the chairman of asset management, Henry Cornell, who retired as vice chairman of the merchant banking unit, Nick Burgin, who had been head of foreign-exchange, Scott Stanford, a co-head of global internet investment banking, and Ned Segal, who headed global software investment banking.

Former Goldman CFO David Viniar, who retired at the end of January, has said that the departures are a natural progression of senior executives leaving to make way for more junior employees to move up the ranks, though they have also helped the bank cut compensation costs.

Last year, Goldman's paid out 37.9 percent of its revenue to employees, down from 42.4 percent the previous year. The lower compensation ratio was cheered by investors and analysts, who had been questioning the bank about cost-cutting for some time.

Goldman shares were down 2.3 percent on Monday afternoon, at $150.54. As of Friday's close, the stock was up 21 percent year-to-date.


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Frank The Great

EVIL Man = US CONGRESS, FINRA, SEC, NRA, US HUNTERS =

AGONIZING END TIME 4 U AMerica

34 US cities KUMPLETELY DESTROYED and brought 2 U by SATANS US PIGGGGGGGGGGGGGGGGGGGS

February 26 2013 at 2:24 PM Report abuse rate up rate down Reply
Frank The Great

TOTAL UNEQUIVOCAL ANNIHILATION AMERICA

BROUGHT 2 U BY YOUR CONGRESSIONAL LEADERS WHO WORSHIP SATAN.

February 26 2013 at 2:22 PM Report abuse rate up rate down Reply
Frank The Great

Sharla HIS PIGGG wife found DEAD gurgling on the KUM of 1000 WOLVEs

February 26 2013 at 2:21 PM Report abuse rate up rate down Reply
Frank The Great

JON TEster FOUND DEAD with his BOYs balls stuffed in HIs MOUTH

February 26 2013 at 2:20 PM Report abuse rate up rate down Reply
Frank The Great

U MURDER 1000 WolvES 4 SATAN American PIGGGGGGGGGGGGGGGGGGGS

U GET SATANS rewarDS and 34 US cities annihilated before

YOUR PIGGGGGGGGGGGGGGGGGGGGGGGS END.

America is A ******** nose sniffing, satan worshipping, animal murdering GREEDY PIGGGGGGG.

Take it Russia, China, N. Korea and Iran.

Christ has LIFTED HIS veil of protection

KUMPLETELY

and IT IS YOUR TIME. Less

February 26 2013 at 2:20 PM Report abuse rate up rate down Reply
Reverend

Here is your favorite speaker Jon Tester PIGGG and wife Sharla PIGGGGGGGGGGGGG.

No intro 4 Satan needed sez the REV.
Welcum mY disciples. Thank U 4 the CALL in 2011, 201x, 201.
Great 2 have u ALL in 1 place at the same tImE with Isaac.
BcAuse NoW I am going 2 take U 4 a riDe 2 mY home in negative infinity.
4 their can B ONLY
1 PIGG
aNd
sATaN aM I,
Am I here, bcause U want me here & invited me long ago. Throughout infinity Man truly represents the word “kiLLeR” the BEST. NOT cOoK iNleT killer Beluga whale or killer mama bear or killer wolf or kiLLeR wolf pup. kiLLeR MAN IS TOPS. Why Do U MuRdER Animals & DEsTROy the EArtH? They are a Creations of XXX. U Do My Work 4 Me!!! A rare place 2 find between infinities. My Legion prepares 4 war against the warriors of XXX. There is no other place where I can walk with so much freedom. What a super place this dEaTh camP is 2 take. XXX has 3 creations: (U, AM I, wE R 1), the animals & Earth. EVIL has always been here with Man, thus, Am I, here. But now U attack the planet and animals of XXX 2 genocide other creations. THIS IS MARVELOUS!! U SHALL ALL BE REWARDED.
I did not even have 2 TAKE the Gulf. It was HANDED 2 me. 88 days, 20,000 psi, 21 inch diameter pipe =DEAD SEA. Drill & drill in water 4 my blood strengthens my Legion. kiLL & kiLL the animals of XXX, NRA, mY aNti-eXistEnce strengthens HERE. I PREACH “Patriotism” 2 my disciples and U USE that slogan well 2 mUrDeR Wolves. SUCH GREATNESS IN America. You fiLL MY sOuLeSs. Once U take out the Earthly animals & creations of XXX:
Then U PIGGS R my targets. Finite. U R easy & U starve 4 End Time.
U R THE PIGGS that Worship Me & fulfill me with the amazing cRuElty that ONLY U CAN PROVIDE. It JUST GETS bEtTer EVERY DAY. U take Joy in creating new born. SO DO THE ANIMALS and U take that away with weapons and transportation and drilling for oil deep into the chambers of my home!! OUTSTANDING!! THIS PLACE WAS CREATED 4 ME. YOUR PETTY SELFISHNESS & eeriesponsibilty brings out the goose step in sAtaN wE tRuST. Chasing animals 2 DEATH using helicopters iDeAs that not EVEN I COULD HAVE dOPeD 4. BRILLIANT!! U mUrDer XXX predators like wolves & replace them with EVIL Man 2 obliterate animals because U R so sneaky taking out the primaries. – U all have turned this IN2 MY Heaven. XXX gave U Heaven 2 build on with the Earth and animals, but U came 2 your SENSES & bcame MY DISCIPLES. Each day U litter the Earth with trash & rOaD kILL, As if NO VALUE. SO MUCH JOY FOR ME HERE. So many mountaintops stripped of Life. sO much wAter bittered. Love Each other, take care of the Earth & the animals; but NO, NOT HERE. Instead, U spread hate & contempt, mutilate the animals & plunder the Earth. U ALL HAVE READ MY BOOK!!! I LOVE U EVIL Man & I SHALL enJoy kiLLiNg ALL OF YOU mY PIGGS. THE SURFACE OF AMERICA WILL MIRROR THE SURFACE OF mErCuRy ON MY LEGIONS DAY OF TRIUMPH!

Satan Am I and this is NOW SATAN’s WORLD –
nOw pAss the wolf pup and Beluga chunks over b4 I devour U NEXT

February 26 2013 at 11:34 AM Report abuse rate up rate down Reply
Reverend

Christ has now lifted KUMPLETELY his veil of protection 4 the US.

Take the PIGGGGGGGGGGGGGGGGGGG, Russia, China, N. Korea and Iran.

Take the GS jujubeeeeeeeeeeeeeeeeeeeee PIGGGGGGGGGGGG while they R stuffing down a bagel with anelll mustard and a LINE 4 their NOses.

sniff


sniff sniff

snifFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF

February 26 2013 at 11:33 AM Report abuse rate up rate down Reply
Reverend

Here is YOUR FAVORITE SPEAKER AMERICA, Montana, Tester PIGGG and wife sharla, nYC financial, FINRA, SEC,nra and US Hunter PIGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGS, WYOMING & Idaho
and why 34 US cities will be KUMPLETELY DESTROYED

B4 the FINAL BLOW.

Christs Warriors WASTE THEIR TIME FIGHTING 4 PIGGGGGGGGGGGGG HUMANITY

February 26 2013 at 11:30 AM Report abuse rate up rate down Reply
josephautomotive

BIG DEAL they are laying off the brokers who steal the least

February 26 2013 at 10:31 AM Report abuse rate up rate down Reply
carb711

They should start with Lloyd.

February 26 2013 at 10:18 AM Report abuse rate up rate down Reply