Goldman Sachs, one of America's most prominent investment banking firms, is allegedly preparing to lay off up to 10 percent of its fixed-income traders and salespeople within the next few months, according to The Wall Street Journal.
The layoffs this year are a lot deeper than the bank's annual five percent annual cut. The bank usually lays off some of its employees in order to make room for new hires. This time, however, the New York firm is preparing to make deeper cuts within its debt, currencies and commodities division.
The jobs cuts in these divisions are partly motivated by the onset of a number of regulations, which require the U.S.' most prominent financial institutions to hold extra capital in order to remain stable despite a possible financial crisis, reported The Street.
While the bank's layoffs seem very prominent, Goldman Sachs would allegedly be laying off no more than 250 people.
Other prominent banks have already announced significant layoffs across their workforce as well. Morgan Stanley, one of Goldman Sachs' rivals, has already announced that it would be laying off 1,200 people, including 25 percent of its fixed-income traders and salespeople, according to The International Business Times.
The news of the layoffs has been received warmly by investors, with the bank's stocks surging 0.86 percent to $160.30 in pre-market trading on Thursday.
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