Goldman Sachs to cut more jobs, eyes sharp fall in markets revenue



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>UPDATE 4-Goldman Sachs to cut more jobs, eyes sharp fall in markets revenue</title></head><body>

Adds closing shares in paragraph 3, company details paragraphs 5-6, comment by Bank of America CEO in paragraph 9

By Saeed Azhar and Niket Nishant

NEW YORK, June 1 (Reuters) -Goldman Sachs Group Inc GS.N plans to cut more jobs as a difficult economic environment weighs on dealmaking and trading revenue may slump 25% this quarter, the bank's president said on Thursday.

"The macro backdrop is extraordinarily challenging," Goldman's president and chief operating officer, John Waldron, told investors at a conference, without specifying the scale of the layoffs.

Goldman Sachs shares closed down 2.3% on Thursday, in contrast to the S&P 500 financial index .SPSY, which rose 1.1% on the day.

The firm is expected to cut just under 250 jobs in the coming weeks, a source familiar with the matter told Reuters in May. In January, it let go of about 3,200 employees, its biggest head count reduction since the 2008 financial crisis.

Staffing cutbacks will help the Wall Street titan achieve its goal of reducing payroll expenses by $600 million, a target set in February that may be surpassed by the end of the year, Waldron said.

Revenue for both equities and fixed-income trading is expected to decline 25% this quarter compared with a year earlier, when rising interest rates and the war in Ukraine boosted market activity and fueled a 32% surge in revenue for its trading division.

"If you think about global banking and markets, the capital markets activity is more sluggish," Waldron said. Meanwhile, "activity levels are more muted" in equities and fixed income, he said.

Waldron's comments echo those of Wall Street rivals. Andy Saperstein, co-president of Morgan Stanley, warned on Wednesday that trading results will be "notably down" in the second quarter versus a year earlier, while "investment banking is also very challenged."

Bank of America Corp BAC.N expects investment banking fees and trading revenue to be broadly flat this quarter compared with a year earlier, its CEO, Brian Moynihan, said at the same conference on Thursday.

JPMorgan Chase & Co's JPM.N revenues for investment banking and trading are both expected to decline 15% in the second quarter, Daniel Pinto, the bank's president, said in May.

Goldman Sachs is running a sale process for its fintech business, GreenSky, and may take a writedown on the $500 million of goodwill, or the premium it paid above the assets' book value, Waldron said. Goldman Sachs agreed to buy GreenSky for $2.2 billion in late 2021.

"As the marketplace has gotten weaker, we've been monitoring whether that goodwill should be impaired over some period of time," he said.

The bank may also consider selling GreenSky's loan book separately.

Goldman Sachs earlier sold $1 billion worth of loans from its consumer bank, Marcus, and plans to further reduce the portfolio, it disclosed in April.

The bank's CEO, David Solomon, had championed its foray into consumer banking since taking the reins in 2018. But the retail business largely failed to gain traction against more established players and lost billions of dollars.

Waldron said Goldman has increased its financing revenue by $3 billion over the last three years and sees more room to take market share as other lenders such as regional banks step back.


BREAKINGVIEWS-Wall Street faces life in China’s second tier nL4N37T098


Reporting by Saeed Azhar in New York and Niket Nishant in Bengaluru
Additional reporting by Lananh Nguyen
Editing by Nick Zieminski, Marguerita Choy and Matthew Lewis

</body></html>

면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.

온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.

이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.

우리는 웹사이트에서 최고의 경험을 전해드리기 위해 쿠키를 사용하고 있습니다. 자세히 읽거나 쿠키 설정을 변경하세요.

리스크 경고: 고객님의 자본이 위험에 노출 될 수 있습니다. 레버리지 상품은 모든 분들에게 적합하지 않을수 있습니다. 당사의 리스크 공시를 참고하시기 바랍니다.