Job cuts at Goldman Sachs

There was further jobs turmoil today after it was reported investment bank Goldman Sachs planned to axe 10% of its workforce worldwide.

Goldman Sachs' flagship banking entity is located in Dublin, having received its banking license in November 2007.

As many as 3,250 jobs worldwide could be affected by such a move. The company could not confirm at this time if any Irish jobs were at risk.

It is believed the job cuts are a direct result of the current economic slowdown and significantly lower levels of business activity. Goldman declined to comment today.

Last month Goldman Sachs, along with Morgan Stanley, switched to being bank holding companies as investors feared the stand-alone investment bank model may no longer be viable.

The move came amid the financial turmoil that saw the collapse of Lehman Brothers and banks dramatically reduce lending to each other for fear that they would not be repaid.

Goldman had been seen as one of the best performing banks during the credit crisis. Although the company's profits fell 71% in its third quarter to August 31, this performance was still better than many of its rivals.

The job cuts follow thousands of other redundancies in the City as the slowdown takes its toll on banking institutions.

HSBC, Merrill Lynch and Citigroup have all announced cuts recently.

Goldman, which has its headquarters in New York, saw its worldwide workforce reach record levels at the end of the third fiscal quarter. It is now expected to be reduced to nearer 2006 and 2007 levels.