Goldman Sachs is cutting costs big time
That's according to Bloomberg's Dakin Campbell, Aaron Kirchfeld, Manuel Baigorri, who report that the firm is pulling in the reins on bankers' travel and entertainment expenses, as well as laying off support staff.
Wall Street banks had their worst first quarter since 2009, with total revenues down 36% from last year, according to Dealogic.
Juniorization and cross-selling
CEO Lloyd Blankfein noted in his annual shareholder letter that overall compensation and benefits expenses have dropped by about $270 million over the past four years, despite total staffing levels being up 11%.
"Through a combination of shifting to a greater percentage of junior employees and relocating some of our footprint to lower-cost locations, we have managed our expenses well," Blankfein wrote.
Specifically, the number of analysts, associates, and vice presidents - that is, the more junior employees - is up 17% over the past four years, while the more senior managing director and partner population is down 2%.
Read the full story over at Bloomberg »