Investment banking giant Goldman Sachs is cutting hundreds of jobs in a company-wide trimming of jobs to cut costs. The layoffs are coming weeks after the bank warned it is forced to trim expenses in the face of the worsening economic outlook. The layoffs will begin next week and employees across the company will be hit, BBC reported.
Earlier in July, Goldman Sachs had said that it was expecting lower profits and hinted at moderating its employee strength. "We have made the decision to slow hiring velocity," its chief financial officer had said at that time, IANS reported, citing the BBC.
48 Percent Plunge in Q2 Profit
Earlier this month, another banking giant, Credit Suisse, said it was cutting as many as 5,000 jobs as part of stringent cost-cutting measures. The jobs lost at the bank would comprise about 10 percent of the bank's entire workforce, according to a Reuters report. Thousands of Zurich-based positions will come under the axe, the report added.
Goldman Sachs reported a 48 percent plunge in its second quarter profit. Its investment banking revenue was $2.1 billion, a drop of 41 percent.
"There is no question that the market environment has gotten more complicated and a combination of macroeconomic conditions and geopolitics is having a material impact on asset prices, market activity and confidence," Goldman Sachs Chief Executive David Solomon told BBC.