Goldman cost-cutting bid hits phone perks
Goldman Sachs Group Inc’s dealmakers endured job cuts and a tough bonus season. Then the penny-pinchers turned to their beloved phones.
In a push to cut costs and shift employees from BlackBerry devices to personal mobile phones, the firm is imposing a new policy around the world for reimbursing data and calling expenses, according to an internal memo seen by Bloomberg.
Goldman Sachs will now chip in US$10 (RM44.52) for data charges on phone bills in the United States, £10 (RM54.55) in the United Kingdom, €10 (RM46.83) in Germany and HK$100 (RM57.34) in Hong Kong, according to the memo. It also spells out conditions for reimbursing costs for phone calls. The changes began on Wednesday.
The new plan is rankling some dealmakers, who spend much of their day on the phone calling and emailing clients to advise on transactions or drum up new business. In the past, Goldman Sachs generally issued BlackBerry work phones and covered full bills.
The firm chose the US$10 figure because that’s typically what it costs for a gigabyte of data, and an application used by employees for work emails didn’t usually consume more than that, according to person familiar with the policy.
Belt-tightening initiatives have helped Goldman shave US$900 million from annual expenses.