From BeaconEquity: Goldman Sachs Group Inc. (NYSE: GS), the Wall Street giant, is planning to make deeper cost cuts, which may include more job cuts, according to a report by the New York Times. The plans for additional cost cuts come following the recent turmoil in financial markets, which has negatively impacted Wall Street firms.
Goldman has among the worst sufferers in the recent turmoil in financial markets. The bank is expected to report weak trading revenues when it releases its third-quarter financial results next month. The recent volatility has also hurt Goldman shares, although the stock has rebounded in the last three trading sessions. Last week, Goldman shares fell below the $100 mark and touched a new 52-week low of $91.40. Since August, when the sell-off in the global equity markets began, Goldman shares lost almost a quarter of their value.
The New York Times reported that the bank is now preparing for one of its worst quarters since going public in 1999 by making deeper cost cuts. The bank has already announced plans to reduce costs by $1.2 billion and cut 1,000 jobs. However, the New York Times says that the bank could make additional cost cots. The paper said that the bank may raise the cost cutting target to $1.45 billion from $1.2 billion. This would likely result in more layoffs than the original 1,000 announced. Also, bankers will have to do with lower salaries and lower non-compensation expenses like real estate and travel,
Read more: http://www.beaconequity.com/smw/12844/Goldman-Looking-to-Cut-Costs-GS-#ixzz1ZEcZ8nW0
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