Goldman Sachs, a hold-out against the trend towards big job cuts in the financial sector, is planning to cut 10% of its workforce in response to the worsening economic environment in the US and abroad.

In London, Goldman employs around 6,000 people, and, as a result, about 600 are likely to lose their jobs.

The cuts will be spread geographically across Goldman offices, with New York and London taking the biggest hits.

They mark a sharp U-turn for Goldman which, despite the turmoil, had been adding employees over the past year. The workforce increased by nearly 9% in the past quarter compared with a year ago, according to regulatory filings.

By contrast, its investment banking rivals have been shedding staff as the dearth of deals and the freeze in credit markets prompted them to cut costs.

Financial Times, Daily Telegraph