SARATOGA SPRINGS Goldman Sachs Group’s move to cut 10 percent of its global labor force reached into the Capital Region this week, with more than 100 layoffs being reported at the company’s Ayco financial consulting arm.
A Goldman spokeswoman confirmed Tuesday that the former investment bank is laying off 10 percent of its 32,000 employees worldwide and that those cuts include Albany area workers. In 2003, Goldman acquired the Albany-based Ayco Co., which later moved its corporate offices to Saratoga Springs.
WRGB Channel 6, The Daily Gazette’s news-gathering partner, reported Monday that Ayco laid off several employees at its British American Boulevard office in Colonie. U.S. media outlets have been reporting on Goldman’s plans to trim a tenth of its work force since last month. WRGB said this round of cuts equated to about 135 layoffs in the Capital Region.
“I can confirm reports of the 10 percent reduction for Goldman Sachs, and we are part of Goldman Sachs,” Ayco spokeswoman Jacqueline Grande said.
Grande would not detail how many employees Ayco has nationwide or regionwide. By the time the company moved into the clock tower-capped Congress Park Centre on Broadway in Saratoga in December 2004, it had 1,100 employees nationwide, of which 675 were in the region. Including the Colonie and Saratoga offices, Ayco has 10 U.S. locations.
The Goldman cuts come as the 139-year-old company struggles to stay afloat amid the global financial crisis, even though it did not get burned as badly by the subprime mortgage meltdown as now-defunct rival investment banks Bears Stearns Cos. and Lehman Brothers Holdings.
In September, Goldman converted to a bank holding company regulated by the Federal Reserve and received a $10 billion boost from Warren Buffett’s Berkshire Hathaway. The newly established bank is also getting $10 billion from the U.S. Treasury Department’s $700 billion rescue fund, which Congress approved in October.
Goldman made headlines earlier this week when its chief executive officer and six other top officials said they would forgo their annual raises, passing up millions of dollars. Since Goldman’s board approved the forgone bonuses Sunday, executives at UBS AG and Barclays PLC have also passed on their multimillion-dollar annual perks.