Goldman Sachs will announce a wave of redundancies starting tomorrow.
Insiders at the firm say the bank will begin announcing redundancies across its divisions, beginning tomorrow morning.
Goldman declined to comment.
The layoffs come as Goldman is finalizing the front to back review of its business under CEO David Solomon. All areas are expected to be affected by the redundancies, which will come in waves over the coming weeks as Goldman consolidates its business as part of its annual trimming process. However, it might be supposed that the fixed income currencies and commodities (FICC) business, which lost $100m in a single day in the fourth quarter, will suffer more than others. - Cuts have already been flagged in the commodities business.
Under former CEO Lloyd Blankfein, the fixed income business was somewhat protected, with then-CFO Harvey Schwartz often reiterating that Goldman would not pull back from FICC due to a poor year or a few poor quarters because the firm, saw the "value of having a diversified set of global businesses," and the "value of being a leader in these businesses."
In a further ominous sign for Goldman's securities business, JPMorgan said yesterday that revenues in its sales and trading business are currently down in the "high teens" in percentage terms compared to the first quarter of 2018.
As Goldman cuts costs, the safest securities jobs at the firm are likely to be in electronic trading. Solomon said in January that "platform electronification" in FICC is the future and the only way for Goldman to reduce expenses in the face of a shrinking "available wallet in market intermediation."
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