Lost Golden Boys: Goldman Sachs to cut 10%

While the number is not too staggering, the amount of money should probably be. While paying out billions in bonuses with money robbed by pen from you and me, the American Tax Payer... Goldman Sachs is removing excess headcounts by 10% or about 3,000 employees. Since investment banking is quite lucrative in the salary game and centered in New York City, this will have some high end impacts. Fine dining, luxury goods, and other similar entities will see decreased demand. First decreased demand from those affected, second decreased demand from those worried they may be next, third is the bonuses will likely be a lot lighter this year than the past few, and finally decreased demand from others in the same industry who are worrying about their jobs.

I remember when Bill Gates said GS was a strong competitor since he was in the IQ business. Maybe with this cutting back and L-shaped recession where the recovery is far from swift, some of the large minds will head out to Redmond instead and fix Vista or do other actual productive work that doesn't include being the leech of the economy.