Investment Giant To Cut Up To 600 UK Jobs

More bad news has hit the banking sector. It looks like Goldman Sachs will drop as many as 600 jobs in London. This isn't particularly comforting considering the recent worries in the hedge fund sector.

The firm is expected to cut about 10% of its job force across the world as it adjusts to the banking crisis. 6,000 people are employed in London alone, so it could be quite severe. So far, various insiders have stated that no precise decisions have been made over just which regions and sectors would be hit the hardest, but the general feeling is that the cuts will be universal.

Goldman has already received both a bailout from the United States government and $5 billion (roughly £3 billion) in the form of Warren Buffett's investment. Still, the company is greatly suffering now that their most profitable areas have been shut down. In particular, the loss of their department for merger and takeover debt financing will be a serious hit.

This news came as unfavorable predictions were made at the Hedge 2008 conference. The meeting issued a warning to the industry's leaders that things will be difficult in the near future. As many as 30% of the firms could face closure. The co-chief executive office from GLG Partners, Emmanuel Roman, stated that regulators might force a full shutdown of the markets for at least a week to try and control the panic. GLG Partners is a major hedge fund known for its aggressive tactics, so the warning isn't without backing. He also joined Nouriel Roubini, a respected NYU professor who made early predictions about the current crisis, in stating that a number of hedge funds would just vanish as the United States forces more regulation in the aftermath of the crisis.

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