Last week vague news began to surface that massive headcount contraction was about to happen across Wall Street.
This week numbers are beginning to come into focus, and even Goldman Sachs won’t be spared.
According to the New York Times, “Faced with weak markets and uncertainty over regulations, many of the biggest firms are preparing for deep cuts in jobs and other costs. Even Goldman Sachs, Wall Street’s most profitable firm, is retrenching.”
Morgan Stanley will also be slashing jobs in its brokerage division; Credit Suisse will be making cuts in equities.
As for Goldman, according to the NYT:
Senior executives at Goldman have concluded they need to cut 10 per cent, or $1 billion, of non-compensation expenses over the next 12 months, according to a person close to the matter who was not authorised to speak on the record. The big pullback will cause Goldman employees, who have already been ordered to cut costs, to re-examine every aspect of their business.
The firm, this person said, had not set final targets for layoffs, but Goldman was “certain” to shrink headcount in the coming months. Decisions on bonuses are still months away, but they are sure to come down as well if business does not pick up.
Bank of America is also putting employees in the chopping block. The cuts will occur in the securities division.
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