Goldman Sachs to limit retrenchment drive

THE retrenchment drive at United States investment bank Goldman Sachs' Hong Kong office has culminated this month in staff reductions of up to 15 per cent, a spokesman said yesterday.

Between 45 and 55 employees have been dismissed or relocated during the past few months, reducing the number of employees to about 400.

But the company denied reports that the firm had expected to retrench an additional 100 to 200 employees.

'In response to an industry-wide downturn and cost pressures of the current operating environment, we have conducted a re-engineering process which is now finished,' the spokesman said.

'This process included selective staff reductions where appropriate.

'The firm remains committed to Asia, and our focus and our strategy for the region are unchanged.' 'We are convinced that having taken the right steps now, we will emerge even stronger when industry conditions improve.' The spokesman would not say which departments were squeezed the most by the belt-tightening, but noted that each unit was forced to reassess its needs.