Goldman set to wield axe

GOLDMAN Sachs could raise its cost-cutting drive by $250m (£159.9m) to $1.45bn by the end of the year.

America’s largest investment bank is expected to raise the $1.2bn level of savings, equivalent to around 1,000 jobs, announced by managers in July. Industry conditions have worsened since then with revenues under pressure from market volatility.

Goldman declined to comment last night but it is understood that full details of the cuts, and the impact on London, have not yet been finalised. Goldman is expected to use its third-quarter earnings statement on October 18 to explain its plans.

The bank’s 35,700 employees received $15.4bn in compensation and benefits last year – or about $430,700 per person – one of the highest rates on Wall Street.

Goldman staff have been bracing themselves for pay cuts as well as redundancies.