Goldman Sachs to cut 10% of fixed-income jobs
Goldman Sachs is preparing to cut 10% of its fixed-income division later this quarter, according to reports; this amounts to about 250 people. Reports point out that these cuts are deeper than those made periodically by Wall Street banks; Goldman Sachs reportedly normally cuts about 5% of its total roster annually in March. While fixed-income divisions in all of the Wall Street banks have struggled over the last year, the downturn has hit Goldman particularly hard.

Goldman Sachs is preparing to drop up to ten percent of its fixed-income division later this quarter, according to a report from The Wall Street Journal.

The layoffs are expected to take place among Goldman's fixed-income traders and salespeople, and could affect about 250 employees.

The potential cuts represent a larger-than-normal excision at the firm.

Goldman Sachs is famous for shedding the bottom 5% of its total roster annually in March.

The fixed-income business has been challenging over the past year, with credit trading especially hard hit.

A number of banks have made significant cuts to their fixed-income divisions, with Goldman Sachs rival Morgan Stanley cutting 25% of staff in its fixed income division late last year.

Goldman Sachs has typically made small-scale cuts to the division, rather than taking an ax to it. At the Bank of America Banking & Financial Services Conference in November, Goldman's chief financial officer Harvey Schwartz noted that the firm tended to make changes quietly.

"The reason we don't make announcements is because I think that's just what you need to do in this business," Schwartz said.

"I don't think there is any reason to make an announcement. You just have to run the business and if the revenue environment is such that you are in a period of decline, you just need to take to those actions."

At the time, Schwartz said the firm had cut its fixed income headcount by 10% since 2013.

It isn't uncommon for Wall Street banks to cut jobs around the time that bonuses are announced. Goldman Sachs is set to tell staff what they'll receive as a bonus for 2015 next week.