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Goldman (GS) Third Round Layoffs: 98 in New York
As a part of big overhaul, The Goldman Sachs Group, Inc. (GS - Free Report) has commenced the third round of layoffs with the elimination of 98 staff in New York. In March, Goldman updated the job cut list filed with the New York State Department of Labor. According to the amended “warn notice,” the company disclosed the potential termination of 109 employees, up from 43 reported in February.
Also, the amended filing extended the time period of the concerned layoffs which were scheduled to take place between May 9 and Dec 31. While the filing does not reveal which operations or positions will be affected, it gives the reason for elimination as “economic.” Further, earlier in April the number was increased to 146.
The employees terminated across various businesses of Goldman were informed in April, May and the first week of June that they will be dismissed between July to October.
Earlier this month, Goldman has retrenched employees in the investment banking division in London, New York and Hong Kong in the wake of reduced deals and a 60% slump in first-quarter profits. Notably, the positions included managing directors, executive directors and vice presidents in the mergers and debt and equity capital markets units.
The job cuts added to the dismissal of 5% of the annual workforce to make way for new recruits. Also, the New York-based banking giant’s job cuts follow the layoff of over 5% of its fixed-income traders and salespersons this year.
Goldman’s move does not come as a surprise as post crisis, investment banks have not been able to boost revenues amid stricter regulations, low rate environment and challenging market conditions. Several other banks that are eliminating employees include Bank of America Corp. (BAC - Free Report) , Credit Suisse Group AG and Deutsche Bank AG (DB - Free Report) .
Goldman currently carries a Zacks Rank #3 (Hold).
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