Goldman Sachs to sack over 200 in India
Decision is a part of global layoff plan. In India, the firm has about 2,300 people, most of that in Bangalore, and the rest in Mumbai. Planning for pink slip
By Sujit John & Swati Anand, TNN |
BANGALORE: Goldman Sachs will shed over 200 people in India , as part of its global layoff plans. The company had announced last week that it would cut about 10% of its global strength of 32,569.
In India, the investment banking firm has about 2,300 people, most of that in Bangalore, and the rest in Mumbai. These include resources in investment banking, global investment research, operations and technology.
"All countries where we have operations have to cut 10% of the staff. A message from the global CEO made that very clear. While it could be 15-20 % in some locations, in India it is expected to be no more than 10%," a senior executive in Goldman Sachs India said.
A mail TOI sent to the company spokesperson enquiring about the matter was unanswered at the time of going to print. "We have been hearing that some departments like accounting might see some layoffs ," another employee said.
Yet another official in the company said around 200 employees are in the process of being asked to leave over the next two weeks. "Post appraisal , there will be some evaluations in India and globally. That might lead to more layoffs ," said the official. The latest appraisal exercise which began in July is almost over.
The Bangalore office was established in 2004 and, according to the company, has grown to become its third largest. A 100-person office was opened in Mumbai in 2006 with a focus on investment banking and the securities market in India. The company says on its website: "The work that is done in Bangalore and Mumbai is a high-value , strategic part of the client service we deliver and contributes to our global position within the industry."
Goldman Sachs has been the only firm among Wall Street's five biggest to remain profitable through the credit crisis. But the firm's revenue for the first nine months of this year has dropped 32% from the corresponding period in the previous year. And now, with mergers and acquisitions, where Goldman has been the top ranked advisor for many years, and initial public offerings coming to a standstill, the revenue outlook is getting bleaker.
However, the Indian operations believes that in the longer run, India will see more hirings than many other locations . "It's less expensive to do things out of here. India may be preferred over places like New York, London and Hong Kong," an executive said.
In India, the investment banking firm has about 2,300 people, most of that in Bangalore, and the rest in Mumbai. These include resources in investment banking, global investment research, operations and technology.
"All countries where we have operations have to cut 10% of the staff. A message from the global CEO made that very clear. While it could be 15-20 % in some locations, in India it is expected to be no more than 10%," a senior executive in Goldman Sachs India said.
A mail TOI sent to the company spokesperson enquiring about the matter was unanswered at the time of going to print. "We have been hearing that some departments like accounting might see some layoffs ," another employee said.
Yet another official in the company said around 200 employees are in the process of being asked to leave over the next two weeks. "Post appraisal , there will be some evaluations in India and globally. That might lead to more layoffs ," said the official. The latest appraisal exercise which began in July is almost over.
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The Bangalore office was established in 2004 and, according to the company, has grown to become its third largest. A 100-person office was opened in Mumbai in 2006 with a focus on investment banking and the securities market in India. The company says on its website: "The work that is done in Bangalore and Mumbai is a high-value , strategic part of the client service we deliver and contributes to our global position within the industry."
Goldman Sachs has been the only firm among Wall Street's five biggest to remain profitable through the credit crisis. But the firm's revenue for the first nine months of this year has dropped 32% from the corresponding period in the previous year. And now, with mergers and acquisitions, where Goldman has been the top ranked advisor for many years, and initial public offerings coming to a standstill, the revenue outlook is getting bleaker.
However, the Indian operations believes that in the longer run, India will see more hirings than many other locations . "It's less expensive to do things out of here. India may be preferred over places like New York, London and Hong Kong," an executive said.
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