FINSwire Mar 18 2011

Goldman Readies for Annual 5% Reduction in Staff

By julie steinberg

Goldman will cut 5% of its staff, all underperformers, in the near term as part of the firm's annual review process, Reuters reported.

The cuts already took place on the trading desk earlier this week, according to the article. More layoffs will take place over the next few months across various units.

The company had 35,700 employees at the end of 2010, which means potentially 1,785 could be affected.

The annual review process includes a 360-degree review, wherein superiors, colleagues and those who report to the employee are asked to evaluate his or her performance. Those who are likely to get laid off usually receive a clue in the form of their compensation total in January -- and many of those leave before getting let go.

A source familiar with the matter told FINS that the cuts are part of the company's annual review process and take place around the same time every year. Similar plans were both announced and rumored in 2008 and 2009, respectively.

Goldman declined to comment.

Write to Julie Steinberg

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