Last year was challenging across groups including credit, equities, and investment banking broadly, said Paul Sorbera, president of Wall Street recruitment firm Alliance Consulting. “Many didn’t make budgets.”The latest cuts will reduce about 6% of Goldman’s headcount, which stood at 49,100 at the end of the third quarter.
The reductions come as U.S. banking giants are forecast to report lower profits this week. Goldman Sachs is expected to report a net profit of $2.16 billion in the fourth-quarter, according to mean forecast by analysts on Refinitiv Eikon, down 45 percent from $3.94 billion net profit in the same period a year earlier.
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