Page last updated at 17:11 GMT, Thursday, 23 October 2008 18:11 UK

Goldman Sachs to cut 10% of staff

File with Goldman Sachs written along spine
Goldman changed its status recently

Financial firm Goldman Sachs is to reduce its global workforce of 32,000 staff by 10%, it has confirmed.

The company confirmed the cuts after the news was leaked but before workers had been told.

Goldman Sachs, once a preeminent Wall Street investment bank, recently changed its status to a commercial bank in order to improve its prospects.

Like other banks it has been hit by a global downturn. The firm recently saw a 70% drop in third quarter earnings.

Between July and September its net income was $845m (525m), down from $2.85bn a year before, due to turmoil in the financial markets and the ongoing credit squeeze saw.

The firm would not say how many jobs would go in London, where Goldman employs 6,000 staff.

Warren Buffett's investment firm Berkshire Hathaway recently acquired $5bn worth of Goldman Sachs shares, after it changed its status from an investment bank.

At the time the bank said the investment would help Goldman, but BBC business editor Robert Peston said the move was not necessarily a vote of confidence because the terms were so stringent.

"He's demanded and is receiving a lovely 10% dividend, which means he views Goldman as a high-risk investment," Mr Peston said at the time.


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