According to Blooomberg Goldman Sachs Group Inc. (GS) plans
to cut $500 million of expenses this year, mostly from compensation, after
reporting the lowest first-half revenue and earnings in seven years.
“We’re controlling the levers that we can,
which are expenses and capital,” Chief Financial Officer David A. Viniar, 56,
said today on a conference call with analysts. “We obviously don’t want to go
too far on either one because we think that the world will get better.”
CEO Lloyd C. Blankfein, 57, who has run the company for six
years, cut 3,200 jobs in the past 12 months to contend with a slowdown that he
said was a temporary reaction to the 2008 financial crisis. After revenue in
all of the firm’s businesses fell in the first half of 2012, the company is
adding new cost cuts to the $1.4 billion achieved since last year, Viniar said.
Second-quarter net income slid to $962 million, or $1.78 a
share, in the three months through June 30, from $1.09 billion, or $1.85, a
year earlier, New York-based Goldman Sachs said today in a statement...
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