Goldman Sachs Cuts 3,200 Jobs

Goldman Sachs (GS: 64.50 -3.34%) announced this morning that it will be laying off about 10% of its work force as the downturn in the credit and lending markets continues.

Goldman plans to hand out about 3,260 pink slips, which will reduce its work force from record high levels at the end of the third quarter.

Goldman Sachs made the change to a bank holding company last month as investors were nervous that a stand-alone investment bank model would no longer be viable.

With the new status of a bank holding company, Goldman Sachs will face increased regulatory scrutiny, which may likely force it to scale back some of its more leveraged and aggressive business entities.