The world is facing a crucial situation and dont know when this economic slow down may end up.All the trading and business performing companies have been hit and none of them left.Especially the banking sectors are been drastically hit and the global crisis impact them directly leading to file bankruptancy.
The Goldman Sachs Group, Inc. is a bank holding company and a leading global investment banking, securities and investment management firm. Goldman Sachs provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals.
Because of the increasing turbulence in US economy, last month the giants in banking sector Lehmann Brothers and the Meriyll Lynch have filed their bankruptancies.The Goldman Sach’s and the Morgan Stanley were the two bank holding companies got the approval of holding the banks.September was considered to be the worst ever hit in the US markets and the shares went down completely.
All because of this now the bank holding and investing company Goldman Sach’s also started to feel the heat.They have the record of having highest number of employees and because of the recent economic turmoil they have decided to slash 10 percent of their work force.Because of this nearly 3620 employees are going to lose their jobs in Goldman Sach.Because of this layoff this company is going to pared back to 2006-2007 record of employee strength.Goldman Sachs has widely been considered among the best performing banks amid the ongoing credit and mortgage crisis that began in the middle of 2007. During its fiscal third quarter, which ended Aug. 31, the company’s profit fell 71%, but that performance was still better than many of its competitors, which have reported quarterly losses throughout much of the year
This decision came because now the company is worrying about the company’s future and if the recession continues then they will be majorly hit.So they have started to reduce their expenses.Last month, Goldman Sachs struck a deal with Warren Buffett to sell preferred and common stock to Buffett’s Berkshire Hathaway (BRKB). As part of the deal, Buffett planned to invest at least $5 billion in fresh capital to help Goldman Sachs. The investment could double to $10 billion.
At the same time, Goldman Sachs issued common stock to raise an additional $5 billion through a public offering.
It has to be noted that the Internet giant Yahoo has also announced that 10% of its task force will be reduced. It is obvious from this that all the major companies are severely been hit by the global recession.