- Thomson Reuters
Goldman Sachs on Thursday made job cuts in its securities business, according to people familiar with the matter.
The cuts bring the headcount reduction in the fixed-income, currencies and commodities (FICC) business to around 10%, the people said.
The news was first reported by The Wall Street Journal.
Goldman Sachs cut staff in a round of redundancies earlier in the year.
The bank had a lousy first quarter, posting a 37% decline in trading revenue versus the same quarter a year earlier. FICC revenues fell 47%.
Harvey Schwartz, CFO at Goldman Sachs, was asked if there might be more job cuts on the bank’s first-quarter earnings call. He said (emphasis added):
In terms of other cost initiatives, I know there’s been a lot of stuff in the press. I guess I would really summarize it as follows. I would just say we’re shareholders and we’re doing things that you would expect shareholders to do.
The FICC business in particular has seen a lot of change. It was announced late last month that the cohead of global fixed-income, currency, and commodities sales, Dalinc Ariburnu, would leave the bank. The other cohead is Tom Cornacchia.
In March, Cornacchia, described a cultural shift wrought with “friction” and “awkwardness”inside the global FICC business.
The Goldman Sachs news extends a miserable week for investment banks. Business Insider reported on Wednesday that Credit Suisse had fired about 130 people in the global-markets business in London.