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A U.S. veteran gets information at the Goldman Sachs booth at the "Hire Our Heroes" Job fair in Sandy, Utah, March 25, 2014. The fair, which is sponsored by the U.S. Chamber of Commerce, is intended to assist veterans, active-duty military, members of the National Guard and Reserve and military spouses to obtain information on veteran benefits, employment or to upgrade their current job situations. Reuters/George Frey

Goldman Sachs Group Inc, the American multinational investment banking firm, has decided to put down 5 to 10 percent of its fixed-income traders and salesmen towards the end of the current quarter, which can affect about 250 people. The investment banking firm would be targeting its debt, currency and commodity divisions, which have been affected the most as a result of investors’ concerns over the slumping commodity prices and the pace of global economic growth.

Bloomberg reported citing a source, who did not wish to be identified, that the decisions would be taken after the bank has evaluated client activity during the period. The bank would possibly resort to much deeper cuts than its usual 5 percent every year for new recruits to come in, and might refrain from replacing the positions left vacant after the cuts this time.

The New York-based investment bank, which will be releasing its fourth quarter report next week, has decided on the move to increase its market share as rival banks contend that fixed-income trading has failed to return to its form after it fell by more than half in 2009.

Goldman Sachs has already reduced the unit’s workforce by 10 percent in the recent years amidst pressure on adjusting the balance sheets for capital rules.

“You just have to run the business, and if the revenue environment is such that you’re in a period of decline, you just need to take those actions,” Goldman Sachs Chief Financial Officer Harvey Schwartz said. “So, you probably won’t hear us make lots of announcements.”

In recent months, stiffer requirement of capital and a steep fall in trading led other investment firms like Morgan Stanley and Deutsche Bank AG to cut down on their staff as well. Last month, Morgan Stanley decided to lay off 1,200 people worldwide, and the number included 470 traders and salesmen. In December, the firm said that it would use a US$150 million (AU$216 million) severance charge in the fourth quarter to cover for the workforce reduction.

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