Goldman cuts staff after second-quarter profits fall
(21 July 2011 – Global) Goldman Sachs reported it would be laying off 1000 staff after its quarterly profits fell short of expectations.
The bank’s net income in the second quarter of 2011 was US$1.05 billion (A$980 million), more than double the figure from the same period last year, but well below forecasts.
The faltering global economy and a slowdown in trading took a deep bite out of Goldman's profitability, executives said, indicating that the bank may lay off some its richly paid top brass.
'During the second quarter, the operating environment was more difficult given global macroeconomic concerns,' chairman and chief executive Lloyd Blankfein said in a statement.
Revenues were $US7.28 billion, down 18 percent from the second quarter of 2010 and 39 percent lower than in January-March of this year, Goldman said. Analysts had projected revenues of $US8.14 billion.
Goldman plans to lay off about 1000 employees around the world by the end of the year, chief financial officer David Viniar said in a conference call after the results were released.
Goldman said its core investment-banking business remained strong in the second quarter, rising 54 percent from a year ago, as it led banks worldwide in mergers and acquisitions and the underwriting of stock offerings.
The faltering global economy and a slowdown in trading took a deep bite out of Goldman's profitability, executives said, indicating that the bank may lay off some its richly paid top brass.
'During the second quarter, the operating environment was more difficult given global macroeconomic concerns,' chairman and chief executive Lloyd Blankfein said in a statement.
Revenues were $US7.28 billion, down 18 percent from the second quarter of 2010 and 39 percent lower than in January-March of this year, Goldman said. Analysts had projected revenues of $US8.14 billion.
Goldman plans to lay off about 1000 employees around the world by the end of the year, chief financial officer David Viniar said in a conference call after the results were released.
Goldman said its core investment-banking business remained strong in the second quarter, rising 54 percent from a year ago, as it led banks worldwide in mergers and acquisitions and the underwriting of stock offerings.
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