The bank has cut 150 top investment banking jobs with managing directors, vice-presidents and associates alike for the high jump. Across the group, 5% of the 22,632 employees will lose their jobs, with the current round of sackings accounting for 12.5% of the investment banking division.
Some of the managing directors on the hit list earn as much as $10m (€11m) a year in salary and bonuses while vice-presidents have become accustomed to seeing $3m in their annual pay packets. Lowly associates, who account for the greatest number of the job losses, earn between $600,000 and $800,000. Most of the jobs will be lost in New York where Goldman has its head office, while only a handful of jobs would be lost in the the City of London, according to a bank spokesman.
The job losses follow a wave of redundancies in financial services. Morgan Stanley has cut 1,500 jobs, while Merrill Lynch, Citigroup, UBS Warburg and Credit Suisse First Boston are in the midst of deep cost-cutting drives.