For the Masters of the Universe at Goldman Sachs’ (GS) even travel within the U.S. will soon be a lot harder to get approved.
The New York-based banking giant has asked its 2,000 some employees at Goldman Sachs Asset Management, GSAM, to cut back on costs—including travel that doesn’t involve meeting a client or getting new business, the Financial Times reported.
The cost cutting move comes as the bank’s earnings have suffered due to low oil prices, weak trading volumes, and poor results at its asset management unit.
Goldman Sachs Asset Management’s mutual fund franchise has experienced about $21.3 billion in outflows over the past 18 months—falling to $85.6 billion by the end of June, according to Morningstar. Meanwhile, the division’s flagship bond fund, the strategic income fund, is down 2.7% over the past 12 months, while the bond market as a whole has risen 6%. That echoes a larger theme in the industry, as investors grow wary of actively managed funds or seek lower cost alternatives.
In the first quarter of 2016, GSAM’s parent division, Investment Management, which also includes private banking, saw revenues fall 15% to $1.35 billion in comparison to the same quarter a year earlier.
GSAM total assets under management however still continue to grow, up by $100 billion in the first quarter versus a year ago to over $900 billion, according to the Financial Times.
CEO Lloyd Blankfein has repeatedly said Goldman is seeking to reduce expenses in the hopes of increasing returns as Wall Street as a whole has struggled amid a sales-and-trading slump. Last week, the firm reportedly decided to cut an additional 60 employees from its trading division.
Aside from layoffs and the hiring of younger and cheaper workers, the bank has also been increasingly rejecting spending on travel, entertainment, and hotel stays unless its necessary to serving clients, according to people familiar with the matter speaking to Bloomberg in April. Goldman may also choose to dial back on even smaller tidbits, including printing pitch books and brochures.
“Prudent cost management is important but we remain committed to serving our clients through active management and we believe we can grow the business over time by focusing on long-term performance just as we have done in other areas,” Goldman Sachs said in a statement to Fortune.