Reuters reported that Goldman Sachs Group Inc is preparing to cut about 10% of its 32,500 employees. The cuts are expected throughout the company.

A news agency said that some workers may be notified as soon as this week and the cuts will include sales staff as well as traders in the bank's fixed income and equity divisions.

Merrill Lynch & Company Inc, which last month accepted a takeover offer from Bank of America Corporation announced that it would cut about 500 jobs in its trading divisions, citing unidentified sources.


Mr John Thain CEO of Merrill Lynch in a television interview with the news service earlier in the day said that the bank needs to cut thousands of jobs because he expects a global recession next year.

Bank of America said that Mr Thain will head investment banking, securities and wealth management when the two banks combine. That is now expected to be by the end of 2008.