As per the news, Goldman Sachs Group Inc informed around 3200 employees this week that they have been fired or laid off.
The company management attempts to justify this job cut by saying that this was as per the reported plans to cut back around 10 percent of the GS global employee headcount. Other reasons quoted were the volatile and downward market conditions.
However, as per the reported news, Goldman Sachs did not comment offically on the development.
This latest cuts has reduced the headcount of Goldman to its lowest level since 2006. Not only that - the layoffs are learnt to be done all across the globe and within every business unit and sector.
A fortnight ago,it was Reuters which reported Goldman planned to cut 10 percent of its staff, or almost 3,300 jobs, reflecting the weak economy and a cut back in proprietary trading. The cuts are an about-face for a company that as recently as September insisted its headcount would rise this year.
Another important thing to note is the way Goldman has been conducting layoffs. As per the news - Goldman has been silently and gradually reducing jobs all throughout the year - they were not noticed because they were in small number at regular intervals. The bank laid off hundreds of M&A support staff and junior bankers in June due to slowing markets, following a round of leveraged lending and mortgage securities cuts in April.
Early this year, Goldman cut 1,500 people, or 5 percent of its staff, following 2007 performance reviews.
Goldman converted last month to a bank holding company supervised by the Federal Reserve and then raised $10 billion from Berkshire Hathaway. These moves, together with a pending $10 billion investment by Treasury, will create a more stable but less profitable company.
May the affected employees of Golman Sachs find alternate jobs in these difficult times.
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