Goldman may cut jobs

October 10, 2001 Posted: 1319 GMT

NEW YORK (CNNmoney) -- Goldman Sachs Group Inc. plans to cut hundreds of jobs, according to a published report Wednesday, which would make it the latest brokerage to shed jobs in response to a sluggish market environment.

Goldman Sachs, which employs more than 23,000 workers, plans to cut between 300 and 400 positions soon and will probably meet next week to discuss the cuts, the Wall Street Journal reported.

Goldman Sachs did not return calls asking for confirmation of the report.

The bank will target higher-level jobs in its investment banking, technology and private banking units, but will continue to hire junior staff, according to the report.

On Tuesday, Credit Suisse First Boston said it was cutting 2,000 jobs in response to a slowdown in stock-market activity in the wake of Sept. 11 terrorist attacks on New York and Washington, D.C.

Analysts said Credit Suisse responded more dramatically than other brokerages likely would, due to fundamental cost problems existing before Sept. 11 and a new CEO, John Mack, known as "Mack the Knife" for his willingness to cut jobs.

Goldman Sachs is unlikely to cut as many jobs as Credit Suisse, according to analysts. But it probably will be difficult for any brokerage to ignore the fact that many investors are shunning stocks, keeping their cash on the sidelines in an atmosphere of uncertainty about the state of the global economy and the outcome of America's war on terrorism, which began in earnest this week with air strikes in Afghanistan.

Goldman (GS: Research, Estimates) shares closed Tuesday up $2.63 at $77.93.

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