Goldman Sachs to hand out pink slips

trader99 · Feb 7, 2003

thank goodness i didn't take their offer in '97 sincer merrill and ms gave better ones. .

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Goldman Sachs to hand out pink slips
By Jenny Spitz, CBS.MarketWatch.com
Last Update: 12:42 PM ET Feb. 7, 2003

NEW YORK (CBS.MW) -- Struggling in a tough business environment, investment banking house Goldman Sachs is planning to hand out pink slips to about 40 of its options-exchange traders early next week.

Goldman (GS: news, chart, profile) shares slipped 14 cents to $66.51 in midday action Friday.

The cuts will take place in all five of its options-trading locations, Goldman said, confirming a report in the New York Post.

In total some 10 to 20 percent of the firm's options traders will be laid off next week, officials said.

They said the cuts would likely be at the high end of that estimate and will include traders at the American Stock Exchange in New York, the Chicago Board of Options, the Philadelphia Stock Exchange and the Pacific Exchange in San Francisco.

While the Post attributed the reason behind the cuts to falling revenue from several big acquisitions Goldman made in 2000, Goldman spokesman Ed Canaday vigorously denied that. He said the layoffs were based solely on the current business climate.

inandlong · Feb 7, 2003

Do you think these guys will go to a prop firm?

Risk Less · Feb 7, 2003

These guys will all be scooped up somewhere. Goldman on your resume in the Options Business is Golden!

I feel like there is storm brewing in the Derivatives Markets that will make D.E. Shaw and Long Term Capital look like blips. There are a lot of crazy things going on in Firms that have historically produced consistent profits.

laziz314159 · Feb 7, 2003

Quote from riskless:

These guys will all be scooped up somewhere. Goldman on your resume in the Options Business is Golden!

I feel like there is storm brewing in the Derivatives Markets that will make D.E. Shaw and Long Term Capital look like blips. There are a lot of crazy things going on in Firms that have historically produced consistent profits.

I'm with you on that one.. The recent AIG announcement is just the tip of the iceberg.

cornholetrading · Feb 7, 2003

What happened to DE Shaw?

McCloud · Feb 7, 2003

I think yesterday GS CEO said something like 15% of the employees do 80% of the work at the firm .. he later apologized! :eek:

QuoteBoy · Feb 7, 2003

they layed off some of the option clerks cause there wasn't enough client calls/orders coming through. No scandals, just low volume there.

PuffyGums · Feb 7, 2003

Maybe there is a reason why retail options traders are taking their business ELSEWHERE!

cartm · Feb 7, 2003

What happened at D.E. Shaw?

omcate · Feb 7, 2003

Quote from cornholetrading:

What happened to DE Shaw?

D.E. Shaw lost a lot of money in late 1998. Since there was a $1.4 billion loan to D.E. Shaw, Bank of America had to bail them out. Investors later filed more than 30 lawsuits against Bank of America over the Shaw losses. The losses prompted the resignation of David Coulter, heir-apparent to head Bank of America, in October 1998. However, D.E. Shaw sold the equity derivatives division and convertible security business to KBC in mid 1999. They may not have a lot of option traders now.