Goldman's Blankfein said to embark on biggest cost-cutting push in years

Goldman Sachs is reportedly kicking off its biggest cost-cutting push in years as it looks to combat a slump in trading and deal-making.

Bloomberg cited two people familiar with the matter as saying the bank recently began dismissing more support staff and is increasingly rejecting bankers’ spending on airfare, hotels and entertainment unless it directly serves clients.

It was understood the company cut technology workers in London this week, while some employees in Europe are not being allowed to take once-routine trips to other offices in the region.

At a conference back in February, Blankfein told investors he was keeping an “eagle eye” on the company’s expenses, adding that the firm had more flexibility to bring them down.

“We can do a lot more on the cost side if we have to,” he said.

“We can always do more. I mean, necessity really is the mother of invention in this case, especially when you have to deliver a return.”

The move to cut back on expenses comes in the wake of a years-long bond-trading slump made worse by market swings and stiffer regulations that have also prompted other banks to scale back.

Goldman has already adjusted its workforce, relying more on junior bankers, relocating support staff to cheaper locations and investing in technology to improve productivity.