Goldman Profit Misses Estimates; 1,000 Jobs to Be Cut

NEW YORK-Goldman Sachs Group Inc. posted a profit in the second quarter from 1.05 billion, well below expectations, as difficult markets led the Wall Street bank to reduce risk-taking to the lowest levels in five years.

Earnings per share of $ 1.85 were 42 cents below the consensus expectations of analysts that earnings miss in its fifth 12 years as a publicly traded company.

"Some of our companies have had disappointing results we have reduced our market risk in response to an attempt to manage price fluctuations and market liquidity," said Chief Executive Lloyd Blankfein in a statement.

Goldman has also revealed plans to cut about 1,000 jobs as part of its savings measures, said Chief Financial Officer of the firm responsible for David Viniar on the conference call the company to discuss its second quarter results.

The job cuts will be part of the plans of securities firms to reduce compensation and non-compensation expenses of $ 1.2 billion in 2011, announced its second quarter filing income.

"We believe that, given the regulatory uncertainty and economic uncertainty ... it looks like the environment will be slower for the foreseeable future so it made sense to reduce a level of spending," said Viniar on the call.

The 1000 - job cuts would be at the top of its annual slaughter of 5% of its staff, to let go of the weaker artists of the security firm.