Crisis in Goldman Sachs: 3,200 staff could go

Goldman Sachs the US investment bank that seemed to be the strongest on Wall Street will be getting rid of 3,200 of its staff it was revealed by someone close to the plans, the source explained that 10 percent of the investment banks worldwide workforce has to go. Goldman Sachs refused to comment on the report.

In London, around 600 of the Goldman Sachs staff are fearful of losing their jobs. Banks around the world are cutting jobs as the global crisis spreads and worsens day by day as we slip into recession.
Goldman Sachs are receiving $10 billion by the US government after turning into a bank holding last month, since then shares have dropped by 50 percent this year in Wall Street trading.

The investment bank nine months revenue slumped 32 percent from a year earlier, it’s also forecast that the firm may drop 38 percent in the quarter ending in November.

The firm booked $4.9 billion of losses on devalued assets like leverage loans and mortgage securities, which is far greater than the write-down’s by rival banks such as Morgan Stanley, Merrill Lynch & Co and CitiGroup Inc.

In the past 18 months Citigroup has cut 24,000 jobs, this is higher than any other bank in the World including Lehman Brothers Holdings Inc. It’s said that in London, banks may cut 62,000 jobs by the end of 2009. This reduction will take the employment level in the banking industry to the lowest level in more than a decade. New York is expected to cut around 40,000 jobs this year in the financial industry.

Source: Bloomberg