Goldman Sachs warns that layoffs could reach 230
Thursday, June 30, 2011
NEW YORK (AP) — Goldman Sachs Group Inc. said Wednesday that it could lay off as many as 230 workers in New York by next spring.
The investment firm notified the New York State Department of Labor of the possible layoffs in a notice filed on Wednesday. In the filing, Goldman said the layoffs would happen between Sept. 26 and March 31, 2012. The company simply cited economic reasons for the layoffs.
Goldman Sachs has about 35,000 employees worldwide. The company does not break down how many of those workers are based in New York.
David Wells, a spokesman for Goldman, declined to provide further details on the layoffs.
The layoffs would be in addition to the company’s annual firing of workers who perform in the bottom five percent or so.
Goldman Sachs in April reported that its first-quarter income fell 72 percent to $908 million. The drop was partly the result of an accounting move that reduced the income available to shareholders as a result of Goldman’s redemption of preferred shares held by Berkshire Hathaway. The investment bank also said its revenue fell 7 percent as a result of weakness in some of its core businesses, including stock and bond trading and advising clients.
The notice filed by Goldman is required under New York state law. The Workers Adjustment and Retraining and Notification Act requires large private employers to provide 90 days’ notice prior to a plant closing or mass layoffs. The law was intended to give the Labor Department time to give affected employees information about unemployment insurance and other resources.
Shares of Goldman Sachs were up 27 cents in after-hours electronic trading, after closing up $3.27 at $132.53 in the regular session.
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