Goldman Sachs Workers Here Get Pink Slips
By Jane Han
Staff Reporter
Goldman Sachs Group started laying off roughly 3,200 employees globally this week, and staff at the Korea office were no exception to the world's biggest investment bank's bold cut to ride out the financial crisis, sources familiar with the matter said Friday.
It was first reported last month that Goldman planned to lay off 10 percent of its staff worldwide, reflecting the slumping credit and lending markets that have sent major global banks into a tailspin.
Staff at the local office were generally safe from the company's previous layoffs, but apparently not from the latest round of cuts, said a source, who asked not to be identified citing the sensitivity of the issue.
Goldman Sachs declined to neither confirm nor comment on the situation.
According to media reports, the job cuts ― which have hit every region and business ― will reduce the bank's headcount to its lowest level since 2006.
Goldman's move comes after the recent Wall Street turmoil that threw Lehman Brothers into bankruptcy and insurance giant AIG begging for bailout. The New York-based bank suffered relatively less compared to rivals, but still saw a steep fall in its core business activities.
Last month, it shifted into a bank holding company, under the supervision of the Federal Reserve, and then raised $10 billion from Warren Buffett's Berkshire Hathaway.
The bank is trying to become more stable, but Merrill Lynch analyst Guy Moszkowski last week said in a note that Goldman is likely to post a fourth-quarter loss.
Aside from Goldman, local offices of Citi, Merill Lynch and Morgan Stanley are among other firms expected to hand out pink slips in the coming weeks.