Goldman Sachs scrapes staff by 20 percent, while a stock market slump leads to profit
Goldman Sachs earned a £ 2.1 billion profit in the first three months of 2019, 20 percent less than a year earlier
Goldman Sachs has cut its staff by 20 percent after it has turned out that profits have fallen.
The investment bank recorded a £ 2.1 billion profit in the first three months of 2019, 20 percent less than a year earlier.
The decline was largely caused by a stock market slump due to quieter markets, it said.
The lender slashed bonuses in an effort to increase profitability, pushing aside £ 2.5 billion for its employees, a decrease of £ 3.1 billion in the same period last year.
It meant that the average Goldman employee stood in line for £ 69,219 for the three months, a decrease of £ 90,985 a year earlier.
The profit fall is a blow for David Solomon, chief executive, who took the lead in October, especially as Wall Street rival JP Morgan managed to earn £ 7 billion in the first quarter.
In response, Solomon – who produces dance music under the name DJ D-Sol – promised to concentrate on new opportunities, including retail banking.
In 2016, Goldman launched a consumer arm called Marcus in the US and last year brought it to the UK with a top-paid savings account.
A strategic evaluation of where the bank is going will appear early in 2020, one year later than initially planned.
Colleague American investment bank Citibank posted a profit increase of 2 percent to £ 3.6 billion.