Wall Street titan Goldman Sachs’ second-quarter profit fell short of expectations as it said it would lay off 1,000 employees amid a faltering global economy.

Goldman Sachs said in a statement that its net income in the April-June period came in at $1.05 billion, more than double the figure from the same three months last year, but below analysts’ consensus forecasts.

Revenues were $7.28 billion, down 18 per cent from the second quarter of 2010 and 39 per cent lower than in the first quarter of this year. Analysts had projected revenues of $8.14 billion.

Earnings per common share were $1.85, substantially below the consensus analyst forecast of $2.27.

“During the second quarter, the operating environment was more difficult given global macroeconomic concerns,” chairman and chief executive Lloyd Blankfein said in the statement.

The bank plans to lay off about 1,000 employees around the world by the end of the year, Goldman’s chief financial officer David Viniar said in a conference call after the results were released.

Goldman, which employs 35,400 people worldwide, already slashed 16 per cent in salary and benefits expenses in the second quarter, compared to the same period last year.

Goldman said its core investment-banking business remained strong, rising 54 per cent from the second quarter of 2010, as it led banks worldwide in mergers and acquisitions and the underwriting of stock offerings. But Goldman’s fixed income, currency and commodities business suffered a 53 per cent drop in revenues, which the bank attributed to shaky macroeconomic conditions.

“High levels of uncertainty and decreased levels of liquidity during the quarter contributed to difficult market-making conditions, particularly in mortgages and commodities,” the bank said in its statement.

“The effect of these macro concerns was more pronounced within the firm’s Asian and European franchises.”

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