“A boat that has too many sailors end up on a mountain”— This is an old Asian saying that nicely summarizes the problem that Goldman Sachs is dealing with; there are simply too many partners who are eating away Goldman Sachs’ s money. As a result, it has finally decided to start the process of delayering, to cut down expenditures and boost the process of decision making.
photo credit:Scott Rubin
Under financial crisis that has reappeared in the market, Goldman Sachs has been striving to cut down costs anywhere it can. It has succeeded to slash down $1 billion operational costs, and also saved a lot of money by laying approximately 1000 people off. And this cost cutting is now approaching high ranked partners, who receive multiple times larger salaries than regular employees. Under these pressure, Kevin Kennedy, a member of the firm’s executive committee, as well Jeff Resnick, the head of commodity trading, decided to resign. More than dozen of partners have also announced their intentions of resignation, and these numbers are expected too escalate over period. Although the company may shrink in its size, I think Goldman Sachs will able to adapt to the fast changing financial market with ease.
http://dealbook.nytimes.com/2011/11/14/a-wave-of-partner-retirements-at-goldman/?ref=business
