Goldman Sachs Group Inc. (GS) cut fewer than 50 jobs last week to trim expenses as the bank’s revenue prospects worsen, a person familiar with the matter said.
The reductions included some managing directors, the second-highest position at the firm after partners, said the person, who asked not be identified because he wasn’t authorized to talk. The New York Times reported on the cuts yesterday.
Goldman Sachs, the fifth-biggest U.S. bank by assets, employed 32,400 people at the end of March, down from 35,400 a year earlier, according to the New York-based company’s most recent quarterly earnings report. The firm is expected to earn $2.29 a share in the second quarter, according to the average estimate of 25 analysts surveyed by Bloomberg. That’s a decline of 42 percent from the preceding three-month period.
Edward Najarian, an analyst at International Strategy & Investment Group LLC, lowered his estimate for Goldman Sachs’s second-quarter earnings per share to $1 from $2 because he expects the firm’s revenue to drop 41 percent from the first quarter to $5.8 billion, according to a June 3 research note.
Goldman Sachs appointed 261 people to managing director last year, according to an internal memo obtained by Bloomberg News. That was a decline of 19 percent from a year earlier, when a record 321 people were promoted to that level.
To contact the reporter on this story: Christine Harper in New York at email@example.com