Goldman said embarking on its biggest cost-cutting push in years

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The firm recently began dismissing more support staff and is increasingly rejecting bankers’ spending on airfare, hotels and entertainment unless it directly serves clients.

Goldman Sachs is embarking on its biggest cost-cutting push in years as it tries to weather a slump in trading and dealmaking, according to two people with knowledge of the effort.

Bloomberg News reports that the firm, already expected to report a steep drop in expenses for the first quarter, recently began dismissing more support staff and is increasingly rejecting bankers’ spending on airfare, hotels and entertainment unless it directly serves clients, the people said.

For example, the company cut technology workers in London this week, one person said, and some employees in Europe aren’t being permitted to take once-routine trips to other offices in the region, said another. Additional cuts are likely.

CEO Lloyd Blankfein, 61, is trying to ride out a years-long bond-trading slump that’s being compounded by market swings and stiffer regulations - challenges that have forced many competitors to scale back. He already has adjusted his workforce, relying more on junior bankers, moving support staff to cheaper locations and investing in technology to improve productivity.

To access the complete Bloomberg News article hit the link below:

Goldman's Blankfein Said to Demand Deepest Cost Cuts in Years

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