01 Nov 2008, David Benyon, Operational Risk & Regulation
NEW YORK - US investment bank Goldman Sachs has announced its intention to cut 3,250 jobs - 10% of its international work force. It says the job losses will be spread across the globe.
In September Goldman and rival Morgan Stanley announced they would become regular bank holding companies, due to fears their investment bank model had become untenable.
Until recently, Goldman had fared well despite the current crisis, with limited subprime exposure. However, its third quarter figures saw a 71% drop in profits, down to $810 million.
The bank allocated more than $11 billion to staff bonuses and remuneration for the first nine months of 2008. It is now expected to attempt to recoup some of this staff expenditure.
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