Goldman Sachs made a number of traders in its fixed income division redundant yesterday, The Trade understands.
Swathing cuts to the fixed income currency and commodities (FICC) business had been widely expected after the bank reported in January that revenue for the division fell by 13% in 2015.
Earlier reports suggested approximately 10% of FICC staff were due to be laid off before the end of Q1, affecting approximately 250 people.
Goldman is known to cut approximately 5% of its worst performing staff annually most years, but particularly difficult trading conditions for fixed income have seen revenues slump across a number of banks, leading to more substantial job losses. Last year, Morgan Stanley announced it would cut FICC headcount by about 25% due to declining sales.
In its full year financial statement, Goldman Sachs said: “During 2015, Fixed Income, Currency and Commodities Client Execution operated in a challenging environment generally characterised by difficult market-making conditions, as well as low levels of client activity in mortgages and credit.”
While the FICC division has struggled, its equities trading business has seen much healthier performance, with revenues up 16% to $7.38 billion.
A Goldman Sachs spokesperson declined to comment.