Goldman Joins Ranks of Blue-Chip Firms Cutting Headcount

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Goldman Sachs (GS) - Get Report has joined a growing list of blue-chip companies cutting their full-time ranks as the coronavirus pandemic continues to pummel economic growth.

Goldman is embarking on a plan to eliminate about 1% of its workforce, or roughly 400 positions. The Wall Street bank joins other lenders in the U.S. and Europe including Citigroup (C) - Get Report, Wells Fargo (WFC ) - Get Reportthat have announced job cuts this year.

Goldman’s move follows a flurry of job-cut announcements this week from the likes of Allstate (ALL) - Get Report, Walt Disney (DIS) - Get Report and Dow Inc. (DOW) - Get Report that indicate the pandemic’s impact is now entering an extended phase where companies are cutting full-time management positions.

Dow said Wednesday it is cutting its workforce costs by 6%. American Airlines (AAL) - Get Report said it will begin furloughing 19,000 employees and United Airlines (UAL) - Get Report will lay off 13,000 workers after lawmakers failed to agree on a coronavirus relief package. 

While U.S. private sector employers added nearly three quarters of a million new jobs in September, the economy is still out some 11.4 million positions since March. Meantime the Labor Department reported Thursday that 837,000 Americans filed for first-time jobless benefits last week, down from a revised 879,000 claims the week earlier.

September's nonfarm payrolls report - the last before the November presidential election - is expected to reveal that employers added a half-million fewer workers last month than they did in August.

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