Goldman Sachs is preparing to drop up to ten per cent of its fixed-income division later this quarter, according to a report from The Wall Street Journal.
The layoffs are expected to take place among Goldman’s fixed-income traders and salespeople, and could affect about 250 employees.
The potential cuts represent a larger-than-normal excision at the firm.
Citing people familiar with the matter, WSJ says Goldman normally sheds about five per cent of its total roster annually in March.
Business Insider finance reporter Portia Crowe reported late last year that fixed-income divisions at Wall Street banks had suffered over the past year, especially in the third quarter of 2015.
Goldman Sachs is one of the big banks particularly struck by the downturn.
At the Bank of America Banking & Financial Services Conference in November, Goldman’s chief financial officer Harvey Schwartz noted that the firm would be making changes quietly.
“We’ve cut head count [in] fixed income by more than 10% since 2013,” Schwartz said.
It isn’t uncommon for Wall Street banks to cut jobs right before bonuses are announced. Bankers typically make their millions from bonuses rather than salaries.
Morgan Stanley and Citigroup are among the first big banks set to announce their bonus numbers this week. Goldman Sachs does the same next week.
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