Goldman Sachs (GS) Will Make Drastic Cuts as Quarterly Loss Looms
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Price: $1,037.93 +3.34%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.1%
Revenue Growth %: +16.2%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.1%
Revenue Growth %: +16.2%
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If Goldman Sachs (NYSE: GS) cuts it's bonuses to zero, and there is no one there to hear it, will it still be true?
Will employees stick around?
Word on the Street Monday suggests Goldman, face-to-face with the possibility of reporting its second quarterly loss since becoming a public company, may undertake such an action.
Other moves Goldman might make includes trimming salaries as well as reducing overhead through headcount reductions.
Even with bonus and salary cuts, it's going to be tough to eke out a win; Goldman's revenue is expected to be just half of what it was in the second quarter.
As banks offered bigger bonuses to workers following the financial meltdown, hoping to land the best talent from long-gone institutions like Bear Stearns and Lehman Bros., the recent market movements have left many saddled with higher fixed costs.
Goldman shares closed Monday's session down 4.7 percent to $90.08.
Will employees stick around?
Word on the Street Monday suggests Goldman, face-to-face with the possibility of reporting its second quarterly loss since becoming a public company, may undertake such an action.
Other moves Goldman might make includes trimming salaries as well as reducing overhead through headcount reductions.
Even with bonus and salary cuts, it's going to be tough to eke out a win; Goldman's revenue is expected to be just half of what it was in the second quarter.
As banks offered bigger bonuses to workers following the financial meltdown, hoping to land the best talent from long-gone institutions like Bear Stearns and Lehman Bros., the recent market movements have left many saddled with higher fixed costs.
Goldman shares closed Monday's session down 4.7 percent to $90.08.
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