Goldman Sachs

(GS) - Get Report

is preparing to cut about 10% of its 32,500 employees, the

Wall Street Journal

reports.

In September, with the company's work force at a record high, Chief Financial Officer David Viniar indicated he expected the company's head count to be flat or higher for the rest of the year. But the credit crisis has deepened since then, forcing Goldman to make the cuts, the

Journal

reports, citing people familiar with the matter.

The cuts are expected throughout the firm, which recently converted to a bank-holding company.

Goldman is suffering from a drought in investment banking and trading, the newspaper reports.

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This article was written by a staff member of TheStreet.com.