NEW YORK (TheStreet) -- Goldman Sachs (GS) - Get Report started cutting its banking investment jobs, including vice president and directorial positions, in the past few weeks due to a slowdown in dealing and trading activity, Bloomberg reports.
This is the start to a larger cost-cutting sweep, a source told Bloomberg. The recent job cuts eliminated dozens of managing directors, executive directors and vice presidents on its mergers and debt, and equity capital markets teams.
The cuts affected the New York City-based financial services and banking company's employees in London, Hong Kong and New York. The bank also annually cuts 5% of employees who "under perform," but those were not a part of the recent job eliminations.
Goldman Sachs' Dominique Jooris, managing director and head of credit capital markets for Asia ex-Japan, and Simon Ong, executive director for Goldman Sachs' South-East Asia debt capital markets division, both left the company and will not be replaced, Reuters reports.
The company's Lloyd Blankfein, chief executive officer, is beginning Goldman Sachs' largest cost-cutting push in years due primarily to a 60% decline in first quarter profit, released on April 19, according to Bloomberg.
Meanwhile, shares of Goldman Sachs closed higher by 0.31% to $159.97 on Wednesday.
Separately, TheStreet Ratings rated Goldman Sachs as a "hold" with a score of C+.
The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: GS
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.