by Christopher Freeburn | February 26, 2013 9:55 am
Insider sources tell Reuters that Goldman Sachs (NYSE:GS) is planning to start a new round of job cuts this week.
The bank’s equities trading business is expected to bear the brunt of the layoffs after posting lower profits and trading volume in recent months. By contrast, the fixed-income trading unit will likely see fewer jobs cuts due to improved volumes. Last year, the fixed-income trading business sustained large payroll cuts.
Goldman Sachs usually trims its payroll early in the year, terminating the employment most under-performing 5% of its workforce. The bank has shed about 3,300 employees over the past two years.
The bank’s CFO recently said that staff reductions allowed the bank to increase equity returns for shareholders. Goldman Sachs has also seen considerable turnover among its senior managers, with a number of high-profile executives leaving the company.
Many Wall Street banks have trimmed their payrolls in recent years in a bid to reduce costs. In December, Citigroup (NYSE:C) announced plans to reduce its payroll by 11,000.
Earlier this month, ING Groep (NYSE:ING) said it would cut another 2,400 jobs from its European operations.
Shares of Goldman Sachs climbed more than 1% in Tuesday morning trading.
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