10% of employees in its fixed-income trading unit will go.
These are not the golden days at Goldman Sachs. GS
The Wall Street investment bank is cutting about 10% of its fixed-income trading workforce as clients cut back on their trading activity amid economic uncertainty in Europe and Asia, according to Bloomberg.
“Goldman Sachs Chief Executive Officer Lloyd Blankfein is undertaking the firm’s biggest cost-cutting push in years as the investment bank tries to weather a slump in trading and dealmaking,” the report reads.
The bank’s troubles were on display last month, when it announced that revenue in the first quarter fell 40% from a year earlier as earnings dropped for their fourth consecutive quarter. In an interview with the Wall Street Journal, Jeff Harte, an analyst with Sandler O’Neill + Partners called the situation in Goldman’s bond trading business a “slow bleed,” adding that “The environment hasn’t lived up to what most hoped it would be.”
Fortune has reached out to Goldman Sachs for comment and will update the story if the company responds.