Goldman Sachs Axes Managing Directors as Job Cuts Move Up the Food Chain

Goldman Sachs let go 50 employees last week, including a number of managing directors, The New York Times reported this evening. That adds to the 3,000 employees the investment bank has sent packing in the last year, as the firm deals with an industry wide revenue crunch driven by the looming European debt crisis and slow market for initial public offerings. Nor does that number take into account the unusually high number of Goldman partners to “retire” in the last year.

Goldman isn’t the only bank cutting staff, The Times notes politely:

Morgan Stanley reduced its work force by 2,935 during the 12 months that ended March 31. While it is a similar number to Goldman’s, this represents just 4.7 percent of its work force. If markets continue to deteriorate this summer, Morgan Stanley is likely to make additional small cuts.

Other firms have been cutting aggressively. Credit Suisse, for instance, had laid off people and earlier this year filed filed a notice with the New York Department of Labor, saying that it planned to lay off 109 people in the state before May 1.

Goldman Sachs managing directors earn a base salary of $500,000, with annual bonuses climbing into the millions, according to The Times. In absence of which pay, Greg Smith’s seven-figure advance may be looking better and better.