Goldman said planning to cut more least-productive employees

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Goldman Sachs is planning to cut up to 10% of its fixed-income traders and salespeople later this quarter, a steeper-than-usual pruning of the firm’s least-productive employees, according to people familiar with the matter.

MarketWatch reports that Goldman annually sheds about 5% of its total workforce in March, often to make room for new hires.

This year, though, the firm is preparing for steeper cuts within its debt, currencies and commodities division, a business whose prospects have dimmed with the implementation of a spate of new regulations on bank risk-taking and capital, the people said. The move is unlikely to impact more than 250 employees.

Bloomberg News reports that Goldman has stuck by those operations to boost market share while rival banks increasingly acknowledge fixed-income trading revenue isn’t bouncing back after falling by more than half since 2009. The trading slump and stiffer capital requirements have prompted firms such as Deutsche Bank and Morgan Stanley to eliminate staff in recent months.

Goldman plans to cut up to 10% of fixed-income traders, salespeople

Goldman Said to Mull Cutting Fixed-Income Staff More Than 5%

 

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