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U.S. markets recover from steep losses
NEW YORK, July 19 (UPI) -- U.S. securities company Goldman Sachs Group reported a below-expectations second-quarter profit of $1.05 billion and announced Tuesday it would cut 1,000 jobs.
The $1.85-per-share earnings were 42 cents below expectations, The Wall Street Journal reported.
"Certain of our businesses had disappointing results as we reduced our market risk in response to attempting to manage fluctuations in prices and market liquidity," Goldman Chief Executive Officer Lloyd Blankfein said in a statement.
Goldman also said it plans to cut about 1,000 jobs as part of its cost-cutting measures, the company's chief financial officer, David Viniar, said during a conference call to discuss its earnings report.
"We think that given the regulatory uncertainties and economic uncertainties … it looks like the environment will be slower for the foreseeable future so it made sense to cut some level of expenses," Viniar said.
The cuts are part of the company's plans to reduce its compensation and non-compensation expenses by $1.2 billion during 2011.
The job reductions announced Tuesday would be in addition to its annual trimming of 5 percent of its staff, meant to let go the company's lowest performers, the Journal said.
Viniar said the job cuts will be broad-based across many of its businesses, but likely wouldn't affect its growth markets, where the company is pushing to grow.
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