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Goldman Sachs Forced to Make Cuts

Tuesday, 19 Jul 2011 01:57 PM

Wall Street giant Goldman Sachs reported a second-quarter profit of $1.05 billion falling far short of investor’s expectations, the Wall Street Journal reports.
"Certain of our businesses had disappointing results as we reduced our market risk in response to attempting to manage fluctuations in prices and market liquidity," said Chief Executive Lloyd Blankfein in a statement.
The firm also announced today its plans to cut 1,000 jobs to decrease its costs and increase future profit. The cuts come as the company aims to reduce its compensation and non-compensation expenses by $1.2 billion over the course of 2011.
The per-share earnings of $1.85 were 42 cents below the consensus expectations of analysts and raised concerns throughout Wall Street that the road to an economic recovery may be an arduous one.
This is only the fifth time in twelve years that the company has missed expectations.

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