Goldman Sachs has been best of breed among its mortgage-mangled brethren, but even it is starting to feel the pinch of a slackening deal flow, which has led to pink slips and slashing perks.
Yesterday, Goldman reported second-quarter profit of $2.05 billion or $4.58 a share, beating analyst estimates of $3.42 a share, according to Thomson Financial.
But it has come with Goldman’s CEO Lloyd Blankfein turning down the dial on costs.
Junior and mid-tier executives now fly coach instead of business class on flights shorter than four or five hours, according to sources.
The measures are also hitting some staffers where it really hurts: the gut. Staffers looking to gear up for a late night deal session, may have to ignore their hunger pangs until 7:30 p.m. rather than 5:30 p.m. and executives are also encouraged to share car services home, sources say.
Over the past several months, the firm has also reduced headcount by about 1 percent of its 31,500 staffers and could look to cut more in soft investment-banking areas such as mergers and acquisitions and leveraged loans.
A Goldman spokesman in New York declined to comment.