Goldman Sacks: Job Cuts To Replace Traders With Robots
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In its latest annual employee review process, sources have told Reuters that the Goldman Sachs Group is looking to reduce staff headcount in its four main divisions, including sales and trading, investment banking, wealth management and investing and lending.
In its latest annual employee review process, sources have told Reuters that the Goldman Sachs Group is looking to reduce staff headcount in its four main divisions, including sales and trading, investment banking, wealth management and investing and lending.
While it is still unclear how many jobs are at stake, the sources told Reuters that the figure could be higher than the 2,400 positions made redundant last year; a drastic move as Goldman acts to cut costs and raise profitability.
In March last year, Goldman had let go 5 percent of its trading staff.
This year, Goldman’s top management has formulated an overall plan for cost cutting (which includes cutting staff and bonuses) and higher revenue targets.
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A Goldman source said:
[quote] In general the whole paradigm of the business is changing. As the business is consolidating and the volumes are going down and there’s still this regulatory pressure, management is really looking at the new paradigm and seeing how many bodies are absolutely required for the business. [/quote]Reuters also reported that Goldman, like many other Wall Street titans, often weed out underperformers or costly employees, who are placed on what is known as a ‘RIF’, or a reduction-in-force list. These employees are typically offered low bonuses in February, before being let go by March.
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[quote] As part of this year’s culling process, Goldman is expected to eliminate employees who fall behind on performance targets, or ‘traders who can be replaced with new technology’, ‘or back-office, technology and operations staff who can be replaced with less expensive employees.’ [/quote]
Or in other terms, Goldman is now looking to replace its traders with robots, or cheaper personnel, depending on the job function.
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