Goldman Sachs fires 1,500 underperformers

28 January 2008

Goldman Sachs has threatened to cut 1,500 jobs as a cost-cutting exercise and warns that bankers whose performance is not up to scratch will be the first to go.

An employer of around 30,500 people all over the world, Goldman will cut about five per cent of its workforce.

But workers at the New York-based bank may have to wait until March to hear if their neck is on the line.

A spokesman told Reuters: "We conduct performance reviews every year and this is part of that process."

However, others might speculate that the job losses are linked to the credit crunch.

Lehman Brothers, Bear Stearns, Citigroup and Credit Suisse have already announced job cuts as they seek to reduce the costs of running a bank.

Although Goldman is one of the only financial firms to avoid mass losses, shrewd business sense has been the reason for this.

Cutting out the deadwood could prove a clever move in the turbulent times of the current financial markets.

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