Layoffs Watch '14: Goldman Sachs

Author:
Updated:
Original:

Employees, particularly those in fixed income, are reportedly worried about having an uncomfortable conversation with Gary Cohn's inner thigh.

A sharp reduction in trading revenues has sparked a panic inside Goldman Sachs as executives there brace for additional layoffs in the firm’s trading ranks unless business conditions improve, FOX Business has learned. People inside Goldman’s trading operations -- traditionally the power center of the big Wall Street investment bank -- say the place most vulnerable to cuts is in the firm’s fixed-income trading operations, where business conditions are weakest in large part because of regulatory limits on risk taking. That’s why people inside Goldman say management is likely to swing the ax further than the constant pruning of the firm’s ranks that traditionally takes place on a regular basis. Buttressing fears of head count reduction: remarks made yesterday by Goldman President Gary Cohn, who admitted the current trading environment is tough and could lead to job cuts. “What drives activity in our business is volatility,” Cohn said at Bernstein's Strategic Decisions Conference in New York. “If markets never move or don’t move, our clients really don’t need to transact... We’re not just waiting for things to get better.”

Drop in Trading Has Goldman Mulling More Cuts [FBN]

Related

Layoffs Watch '12: Goldman Sachs

The cuts aren't said to be too significant but good luck telling that to the people who'll no longer be receiving quality Cohn-crotch time. Goldman Sachs, the Wall Street bank that generated 58 percent of first-half revenue from sales and trading, eliminated 20 to 30 jobs in that division this week, according to a person briefed on the matter. The cuts affected salespeople and traders in the U.S., with most taking place in New York, said the person, who asked not to be identified because the reductions aren’t being announced publicly. The decision is part of a continuous review of staffing levels amid difficult markets, the person said. Goldman Sachs Said To Cut More Than 20 In Sales, Trading [Bloomberg]

Layoffs Watch '12: Goldman Sachs

A whole bunch of senior people were to pack up their things and leave last Thursday. Goldman Sachs laid off about 50 people last week, according to people briefed on the matter but not authorized to speak on the record. The cutbacks have rattled some people in the firm, in part because a number of the employees were managing directors and on the higher end of Goldman’s pay scale. We're also told that "good performers, not dead weight" were among those cut, which must doubly sting. Goldman Sachs Cuts A Little Deeper [NYT]