The new job cuts are taking place in all of Goldman's four main divisions, including sales and trading, investment banking, wealth management and investing and lending, according to one source familiar with the matter. Many of the cuts are aimed at traders who can be replaced with new technology, or back-office technology and operations staff who can be replaced with less expensive employees, the source said. The bank has been pushing aggressively to replace staff in high-cost areas like New York and New Jersey with less costly workers in Salt Lake City, where the company is building a sizable workforce.Goldman sees the entire investment business changing, one source said. "Management is really looking at the new paradigm and seeing how many bodies are absolutely required for the business." That means that whoever survives this latest purge isn't necessarily safe for the year. Is all of this change on Wall Street ultimately good or bad for its IT departments? Let us know what you think by posting a comment below. Image: Wikimedia Hat Tip: eFinancialCareers
Goldman Sachs Tech Staff In Flux
Goldman Sachs is conducting its annual staff review, and a number of IT jobs could be in jeopardy, Reuters says. Each year, the company dismisses employees who miss their performance goals or whose jobs can be done less expensively, either through technology or cheaper hires. That puts IT in a good news/bad news situation, since new technology is going to need implementation and support. On the other hand, trimming in other departments is sure to impact some tech employees as overall needs and priorities change.