Layoffs Watch '14: Goldman Sachs?

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The House of Blankfein might make cuts or it might not, according to Charlie Gasparino. Whatever happens, though, it doesn't change the way Lloyd feels about you; he'd keep each and everyone one of you if he could.

Goldman is weighing whether to make a formal announcement about the size and scope of potential cuts among traders, amid a sharp decline in revenue -- particularly in the fixed-income business, according to people with knowledge of the matter. This announcement could be made during the firm’s second-quarter earnings announcement, scheduled for July 15. FOX Business earlier reported that a sharp reduction in trading revenue has sparked a panic inside Goldman Sachs as executives there brace for additional layoffs in the firm’s trading ranks unless business conditions improve. The cuts would go beyond the 10% staffing reductions that usually take place at the big bank. At a recent investor conference, Goldman Sachs president Gary Cohn conceded that the trading environment -- squeezed by post-financial crisis regulations that reduce Wall Street risk taking -- is difficult and could lead to head-count reductions. But people close to the firm say there is still no agreement on whether larger cuts are needed. The firm’s chief executive, Lloyd Blankfein, is hesitant to make large cuts fearing that the trading slowdown is cyclical and the business could bounce back.

Trading Slowdown Has Goldman Mulling Further Cuts [FBN]

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