Goldman Fires Dozens Of Investment Bankers

Tyler Durden's picture

Following an abysmal quarter for investment banks around the globe, which saw salary cuts across the board as a result of sliding revenues in virtually all product areas, we forecast that the next logical step will be ongoing major layoffs of some of the world's highest paid employees. This morning none other than the most insulated from global financial troubles bank confirmed just this when Bloomberg reported that Goldman had quietly cut investment banking jobs in the last few weeks, joining securities firms that are adjusting to a slowdown in deal activity.

According to Bloomberg, the bank eliminated dozens of managing directors, executive directors and vice presidents across the mergers and debt and equity capital markets teams. The cuts affected bankers in cities including London, New York and Hong Kong and are in addition to the bank’s annual 5 percent cull of employees deemed underperformers, the people said.

Earlier, the firm's president Gary Cohn said on Tuesday that the same forces that helped fuel mergers and acquisitions in 2015, such as low interest rates and sluggish growth, remain in place today and that the outlook for the business remains bright. However, the future is far less bright to dozens of bankers who have now packed up and are trying to find a similar, well-paying job.

As Bloomberg adds, CEO Lloyd Blankfein is embarking on his biggest cost-cutting push in years as the bank tries to weather a slump in trading and dealmaking. The job reductions follow a similar move in the firm’s trading division this year, driven in part by a 60 percent drop in first-quarter profit.

The investment-banking cuts represent a reversal from 2015 for a unit that was the top-ranked merger adviser during that near-record year and produced the most profit among Goldman Sachs’s four operating segments. Completed mergers worldwide have plunged more than 80 percent so far this year, while equity offerings have dropped about 65 percent.

What is more paradoxical, is that while in 2014 banks complained about the lack of volatility as the scapegoat for not generating enough revenues, in late 2015 and early 2016 it has been too much volatility that was the culprit. Unfortunately, since the Goldilocks market appears a thing of the past, we expect stories such as this one to be the norm in the coming months as the banking industry struggles to rationalize its income statement to a new normal that is no longer overtly generous to banking profitability.

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jcaz's picture

Gee that's too bad.....

Cognitive Dissonance's picture

I bet the severance package is to die for. And something else to bolster the non-GAAP numbers.

Looney's picture

… "Goldman Fires Dozens Of Investment Bankers"
And each of them gets an engraved NAILGUN! ;-)
Looney

SWRichmond's picture

..unless they swear to not "peddle fiction" about the economy

Hitlery_4_Dictator's picture

"Mr. Biden would be cast as the white knight rescuing the party, and the nation, from a possible Trump presidency. To win over Sanders supporters, he would likely choose as his running mate someone like Sen.  Elizabeth Warren who is respected by the party’s left wing."

 

Trump is finished

 

http://www.wsj.com/articles/clinton-might-not-be-the-nominee-1464733898

valjoux7750's picture

What  difference does biden make? He just more of the same bs which is why Trump is in the position he is now.   Only thing that will keep trump out of office is a jfk moment.

Biden lol, no! Lmao

This new layout sux ass

Baa baa's picture

Let 'em swear while plunging.

Ignatius's picture

Dozens of unemployed investment bankers loose on the streets:  hide your children and expect a fresh crime wave to sweep over Gotham.

ack's picture

Nah. They just fired the goyem bagmen. Next round comes the ZIO-scum psychopaths. That's when you hide little boys and girls from pedos with time on their hands. 

XAU XAG's picture

"However, the future is far less bright to dozens of bankers who have now packed up and are trying to find a similar, well-paying job".

 

 

 

No Chance!

Government needs you to pay taxes's picture

Paid like a pimp, dirty like a whore.

kiwidor's picture

ah....hahahahaahah

 

B-Bond's picture

Man with the Goldman gun.

Kirk2NCC1701's picture

Did Heidi Cruz get hers?

Fisherman Blue's picture

On the look out for sugar daddys now.

Kirk2NCC1701's picture

The guy in the pic looks like he could get a job with ISIS, if you put a beard on him, a black outfit and white Nike sneakers.

Mr Pink's picture

Where do we send donations?

kiwidor's picture

that's just so tempting

 

Baa baa's picture

That is funny!!! Got a snort for that one.

Dubaibanker's picture

It's not just GS.

HSBC, too, fired investment bankers today!

Thank God, there will be less of these scum investment bankers who sell nothing but shuffle paper around and create havoc for bankers working outside of NYC, London and Geneva (who are all assholes in those 3 cities).

When will any GS banker go to jail for lying on Greek debt papers?

HSBC Said to Cut Senior Investment-Banking Jobs to Lower Costs
Chippewa Partners's picture

Couldn't happen to a better bunch........

DogeCoin's picture

Wow the economy must be really bad, even casino workers are being laid off.

Kirk2NCC1701's picture

They failed to convince enough Muppets to keep their money in products that generate Management Fees.

Instead, ever more of these Muppets are waking TF up, and putting/parking their money or a good chunk of their portfolio in Cash, MMF and Bullion.

sessinpo's picture

They'll be okay. There are lots of bartender jobs out there.

ebworthen's picture

Next up, N.Y.C. Real Estate.

 

Churn and burn; thanks FED.

 

Cotton Candy machine running out of sugar.

DavidC's picture

Shame! Shame!

DavidC

nopat's picture

DOZENS!  LITERALLY DOZENS!

Winston Churchill's picture

Unless they put a stake thru' their heart,so what ?

Ghordius's picture

see? you might work for the Vampire Squid Firmly Attached To The Face Of Humanity, but that does not mean the Squid cares... for you

Kirk2NCC1701's picture

You sound like my late mother, who told me 30 years ago:

"It's nice and commendable that you care so much about your company, but remember that your company will never care about you."

wobblie's picture

The gods are not happy.

Actually there is only one god: The Surpeme Executive.

https://therulingclassobserver.wordpress.com/2016/05/31/the-supreme-exec...

Kirk2NCC1701's picture

Lord Bankfine?  Doing God's work.

spanish inquisition's picture

Goldman - "...most were lower performers who had issues with having morals. They had not made the intellectual leap that to do God's work, you have to lie. . Serious or not"

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Jun 1, 2016 9:00 AM

The problem isn't too much or too little volatility. The problem is that the market isn't just going straight up...

E.F. Mutton's picture

Commence Operation Gone Goyim

Xvrolon's picture

Lehman let go dozens of underperformers in early 2007 if I remember right  ...then 4k then show time.  

dogismycopilot's picture

Goldman fires 10% of their base every year as part of prunning. No big deal here that I can see.

Seasmoke's picture

It will get much better as soon as Goldman opens all those new branches.

E.F. Mutton's picture

It would be better if they had to train Mr. Patel on their way out

FreeNewEnergy's picture

I heard the pink slipped bankers actually had a choice:

A. Fired with severance package.

B. Work for no pay (aka, slavery)

C. Suicide by Nailgun (triple tap)

D. Become Blankfein's personal fluffer

Turns out Lloyd now has 20 or 30 fluffers available and an ample staff of unpaid servants in the C suite.

Life is GUD when doing God's work.

kiwidor's picture

you are sufficiently overweight to be regarded as not-credible

Newbie lurker's picture

Robots took der jabs!!!! Well, computer algos anyway...

JailBanksters's picture

Long Service must be due....

 

MASTER OF UNIVERSE's picture

I distinctly remember that photo used in the article. If I remember correctly that guy in the photo was a Lehman Bros. employee, and that photo is from 2008. Moreover, getting the boot from Wall Street is not such a bad thing given that Wall Street itself was given the boot back on March 10th 2008.

 

die die die, America!