Goldman Sachs cutting jobs
One thing about layoffs is that they certainly provide an opportunity for bank managers to cull their weakest performers.
On Wall Street, the notion that banks should clean house to the tune of 5 percent or more at least once a year has never been controversial. Sometimes, such culling aligns with layoffs and sometimes they don't. Goldman Sachs (NYSE:GS) is set to pare some jobs, notably in sales and trading, according to Reuters.
"Equities trading will likely see cuts bigger than 5 percent, while fixed-income trading, which took big hits last year and has had better volumes, will likely see cuts of less than 5 percent, the sources said. The number of shares traded on major U.S. exchanges this year is down 7.2 percent. It is unclear whether the cuts in totality will be larger than Goldman's typical 5 percent culling across the firm," the article noted.
If one had to guess, they might do well to guess that the bank will take a conservative approach and perhaps lay off more than usual. The reality is that the trading environment will remain unstable for a while, and no one is looking to cash equities as a big revenue source.
Secular trends are all portending a tougher job market over the next few years in this market. At the same time, the need to hike returns isn't getting any less intense.
- here's the article