FOX Business Network (FBN) senior correspondent Charlie Gasparino reports that both “Morgan Stanley and Goldman Sachs are seriously eyeing layoffs.” Gasparino went on to report that “press officials both at Morgan and Goldman are not denying it,” saying that “they are looking at headcount all the time.” In addition, Gasparino reports that Citigroup employees are saying the bank timed today’s 11,000 cutback announcement to allow them to “renege on year-end bonuses to anybody that’s been caught in the cutback.” Excerpts from the report are below, courtesy of Fox Business Network.
On whether Morgan Stanley and Goldman Sachs are eyeing layoffs:
“What sources are telling the FOX Business Network that Morgan Stanley and Goldman Sachs are seriously eyeing layoffs as well. We don’t know the timing of those…but what I should point out both press officials both at Morgan and Goldman are not denying it. What they’re telling us is that they are looking at headcount all the time, they base their headcount based on the business conditions, which is a nice way of saying ‘you’re right on target, we are planning cutbacks.’ We can’t tell you how much they’re cutting back, but we will tell you this; Morgan and Goldman have been cutting back all year, the fact that they are planning more cutbacks means that they think the Wall Street outlook for 2013 is pretty lousy.”
On the timing of Citigroup’s 11,000 job cut:
“We should point out that Wall Street executives employees, not just the high flying ones that make millions of dollars, they get most of their compensation through the year-end bonus. They get a salary and they get a bonus and most of what they make every year is in the bonus. The way Citigroup did these cuts from what I understand – I am getting this from Citigroup employees are telling the FOX Business Network, they can essential renege on year-end bonuses to anybody that’s been caught in this cutback that’s basically out of a job now.”