The Goldman Sachs Group, Inc. GS expanded this year’s job cut plan, as it updated the list filed with the New York State Department of Labor. According to the amended “warn notice” the company disclosed the potential termination of 109 employees, up from 43, previously reported in February.
Also, the amended filing extended the time period of the concerned layoffs which is scheduled to take place from May 9 to Dec 31. Earlier the bank stated that it will complete elimination by Jul 1.
While the filing does not reveal which operations or positions will be affected, it gives the reason for elimination as “economic.”
Reportedly, amid the industry wide weakness in revenues, the New York based banking giant intends to eliminate over 5% of its fixed-income traders and salespersons. Goldman usually undertakes annual workforce cut of 5% to make way for new recruits. During fourth-quarter 2015, Goldman recorded an 8% year-over-year decline in fixed Income, currency and commodities client execution revenues.
Goldman’s move does not come as a surprise as post crisis investment banks have been facing challenges to boost revenues amid stricter regulations, low rate environment and challenging market scenario. Several other banks that are eliminating employees include Bank of America Corporation BAC, Credit Suisse Group AG CS and Deutsche Bank AG DB.
Goldman carries a Zacks Rank #3 (Hold).
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