The slowdown in the fixed income markets has continued to impact staff across major investment banks globally. Goldman Sachs has become the latest institution to cut its personnel in the aftermath of the slowdown observed in the markets. The news comes after similar steps have been taken by a number of competing institutions like Morgan Stanley, Credit Suisse and UBS.
Goldman Sachs is expected to cut 10 per cent of its personnel in sales and fixed income by the end of the first quarter according to a report by the Wall Street Journal. Debt markets have slowed down materially throughout the past couple of quarters as a result from the increasing expectations of higher interest rates coming to the market.
According to the Wall Street Journal report, the reduction in the sales and fixed income staff is expected to affect about 250 people globally. In addition the report highlighted that there is a possibility that Goldman Sachs will also cut additional jobs in its fixed income, foreign exchange and commodities units.
Back in December Morgan Stanley, one of the biggest competitors of Goldman Sachs, officially announced that it is going to part ways with more than 1,200 of its workers as a part of a broad labor restructuring effort. The figure included about 470 employees in the bank’s fixed income business.