Goldman to cut 1,000 jobs as trading plunges
Goldman Sachs will lay off 1,000 staff before the end of the year, amid sharp falls in trading activity.
The investment banking giant missed investors' forecasts for revenue and profits in the second quarter, raising the possibility that it is losing market share in bond trading, a business that had previously been a major engine of its growth. Recent results from Citigroup and JP Morgan have beaten expectations.
"Certain of our businesses had disappointing results as we reduced our market risk in response to attempting to manage fluctuations in prices and market liquidity," Goldman's chief executive Lloyd Blankfein said yesterday. He blamed macroeconomic risks, such as concerns over European debt and disruption to Middle Eastern oil production.
New regulations and caution about exotic financial products have also curtailed the freewheeling trading seen before the credit crisis.
The company has already begun laying off staff around the world, and 1,000 people – about 3 per cent of the workforce – will have gone by the end of the financial year.
David Viniar, the chief financial officer, said trading feels "a little better" in the third quarter, but warned business will be slower for the foreseeable future. Fixed-income trading now accounts for a smaller proportion of revenues than equities trading. Overall profits were $1.05bn, and earnings per share of $1.85 were about a fifth below estimates.
Stand by for another DECADE of wet summers, say Met Office meteorologists
'Jail reckless bankers': Report urges the Government to introduce new criminal offence for reckless management
Feat of engineering: Incredible photographs show construction beneath New York's Second Avenue
World news in pictures
Google challenges US surveillance gagging order
- 1 Disability campaigners celebrate 'victory' after government rethink over plans to make it more difficult to claim disability benefits
- 2 'Jail reckless bankers': Report urges the Government to introduce new criminal offence for reckless management
- 3 Breaking the Silence: In the reality of occupation, there are no Palestinian civilians – only potential terrorists
- 4 Uri Geller psychic spy? The spoon-bender's secret life as a Mossad and CIA agent revealed
- 5 Vice pulls 'breathtakingly tasteless' fashion shoot glorifying the suicides of famous female authors from Sylvia Plath to Virginia Woolf
iJobs Money & Business
£600 - £750 per day: Orgtel: FATCA Project Manager - Banking - London - £600-...
£550 - £600 per day: Orgtel: Fidessa Analyst / PM - Banking - London - Up to £...
£55000 - £60000 per annum + Benefits + Pension: Orgtel: Quantitative Analyst, ...
£150 - £250 per day: Orgtel: KYC Analyst - London - Banking - £150-250/day C...