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Goldman To Cut More Investment Banking Jobs In New York

ByZacks Investment Research
Published 08/24/2016, 02:44 AM
Updated 07/09/2023, 06:31 AM

Continuing its strategy to lower workforce in investment banking unit, The Goldman Sachs Group, Inc. (NYSE:GS) has announced yet another round of job cuts in New York. This news was reported by Bloomberg.

As per the notice to the New York Labor Department, Goldman plans to eliminate 15 additional jobs by the end of 2016. While the affected employees were notified in July about the impending cuts, the company will begin the process on Oct 3.

Goldman has been retrenching workers across various lines of businesses since the beginning of this year. Notably, this can be termed as the fifth round of job cuts in New York this year, with prior announcements of 408 cuts (in batches). As of Jun 30, 2016, the company had around 34,800 employees.

Generally, Goldman dismisses nearly 5% of the annual workforce to make way for new recruits. However, this time the company has extended this to 10% of its workforce in the investment banking unit. The primary reasons for trimming workforce is persistent slump in trading and deal making.

Further in Jun 2016, Goldman retrenched employees in the investment banking division in London, New York and Hong Kong in the wake of reduced deals and a slump in profits. The positions included managing directors, executive directors and vice presidents in the mergers and debt and equity capital markets units.

Meanwhile, Goldman is not the only one retrenching its workforce owing the trading slump. Morgan Stanley (NYSE:MS) is also slashing staff at its fixed income division. Additionally, many other major foreign companies including Credit Suisse (SIX:CSGN) Group AG (TO:CS) and Deutsche Bank AG (NYSE:DB) are eliminating employees.

Goldman currently carries a Zacks Rank #3 (Hold).


CREDIT SUISSE (CS): Free Stock Analysis Report

DEUTSCHE BK AG (DB): Free Stock Analysis Report

MORGAN STANLEY (MS): Free Stock Analysis Report

GOLDMAN SACHS (GS): Free Stock Analysis Report

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