Yahoo Finance Goldman Laying Off Employees in Sales and Trading Division
The Goldman Sachs Group GS is undergoing annual staff restructuring process and is doing layoffs in its sales and trading division. Per a Business Insider report, employees dealing with clients trading stocks, bonds and currencies are being terminated.
After conducting a performance evaluation of all its employees and overall business, the company decided upon the percentage of people it would lay off. Further, new CEO David Solomon is undertaking such moves with a view to control costs and tap on areas that could generate higher profits.
In early March, Goldman trimmed the commodities business by firing 10 employees, after a similar review on the arm revealed that it was not generating enough returns to justify the amount of capital being invested.
Further, in a filing with the New York state labor department, Goldman announced that it cut 65 positions in its investment banking arm.
Solomon is on track to boost revenues across the company by driving performance of its segments. At its Investment Banking wing, the company plans to expand its product offerings, grow client footprint and deepen relation with existing customers.
Further, in the Investment Management unit, performance growth is expected to be achieved by increasing coverage of ultra-high net worth clients and expansion across region. Also, at Investing & Lending, Goldman plans to build a consumer business over time by solving customer “pain points” and utilizing technology to deliver at scale.
While the bank is on track to remodel its business into a more profitable organization, it continues to be face investigations over its role in helping to raise funds for the 1Malaysia Development Bhd and other legal cases, which are likely to keep costs elevated.
Shares of the company have lost around 13% in the past six months compared with the 11.1% decline of the industry.
Goldman currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
SLM Corporation SLM has witnessed 2.5% upward estimate revisions over the past 60 days. Moreover, the stock has appreciated 23.7% in the past three months. It currently carries a Zacks Rank #2 (Buy).
Popular, Inc. BPOP has witnessed 2.6% upward estimate revisions for the past 30 days. Additionally, the company’s shares have rallied 13% in the past three months. It holds a Zacks Rank of 2, at present.
The Zacks Consensus Estimate for BankFinancial Corporation BFIN has been revised 2.1% upward over the past 30 days. Also, the company’s shares have gained 3.1% in the past three months. It carries a Zacks Rank of 2, currently.
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