Goldman Sachs scrapes staff by 20 percent, while a stock market slump leads to profit

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 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.

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