More Cuts Likely At Goldman

Goldman cut headcount by only 2% in the first quarter of 2002 and has prided itself on keeping more staff on the payroll in percentage terms than most of it's Wall Street rivals.

It is now thought that the bank will have to take further action as there is no real sign that the economic upturn now being seen will have any short term impact on profitability.

With first quarter net revenues down 32%, Henry Paulson, Goldman Chairman and CEO, said: 'While we have seen some encouraging economic data of late, the current economic environment remains very challenging. We will continue to manage the franchise with discipline and, as always, focus on the needs of clients.'