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Goldman and Citi show jobs agony
06.11.08
The nightmare on Wall Street was laid bare for Barack Obama today with mass layoffs at Goldman Sachs and Citigroup highlighting just how bad the market has got.
Goldman, which is axeing 600 jobs in the City, began handing out redundancy notices to about 3200 employees as part of a recently announced cull.
Citi also this week began sackings in its plan to axe 9100 positions over the next 12 months. Those bankers who remain in jobs will have their bonuses severely reduced.
Senior executives at Wall Street firms can expect up to 70% less in their bonus package this year, according to pay consultants Johnson Associates.
That will have the inevitable trickle-down effect in the New York economy but will also dent tax receipts for the Obama administration next year.
