NEW YORK (AP) — On the surface, Goldman Sachs had a triumphant first quarter. By one popular measure, its profit more than doubled, and the bank announced it would raise its dividend.
But those achievements masked lurking problems. The jump in earnings was a quirk related to repaying Warren Buffett's Berkshire Hathaway last year. Revenue fell 16 percent compared to a year ago. And to make up for those weaknesses, the storied investment bank — Wall Street's almost-perennial winner — had to turn to cost-cutting.
Goldman shed 3,000 jobs over the year, or about 8 percent of its work force. It cut back on salaries, trimmed occupancy costs and paid less in brokerage fees, cutting total expenses by 14 percent. Average compensation per employee, which includes benefits, fell to $135,000 for the quarter, down from $148,000 a year ago.
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