Goldman becomes frugal on the hiring front


Goldman Sachs is hiring like crazy to expand its investment management business, but because many of its new workers are based in low-cost cities, its costs are still going down.

Reuters reports that the firm, which reported second-quarter earnings on Thursday, said staffing levels rose for the fourth straight quarter.

Its workforce of 34,900 employees at June 30 was up 8% over a year and up 1% since March 31. The growth came in investment management, a business the bank has been trying to grow for years, as well as regulatory compliance, CFO Harvey Schwartz said.

However, the amount Goldman spent on employees declined both in nominal terms and as a percentage of revenue. Money spent or set aside for pay and benefits dropped 3% from the second quarter of 2014. Year-to-date, that expense represented 42% of net revenue, down from 43 percent for the second half of 2014.

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