NEW YORK, Fri Sep 14, 2012 – Goldman Sachs Group Inc. has ended a two-year training program for recent college graduates after running it for a quarter century as the U.S. investment bank found it was not meeting its aim of retaining new talent.
Goldman’s decision came after the New York bank fired a handful of analysts over the past year for signing on to work at other financial companies in violation of their contracts.
“We think the historic two-year program is no longer the best approach for hiring and developing the careers of analysts in our banking and investment management divisions,” Goldman Sachs spokesman David Wells told Reuters.
Wells said that making this change will allow Goldman “to emphasize the longer-term career opportunities available at the firm.”
He added that Goldman will continue to provide the skills and time needed to understand the company’s businesses.
By doing away with the two-year program, Goldman will not have to commit to keeping analysts and paying them for a set period of time. That gives the firm flexibility to cut analysts sooner if their work is not up to par, or if it has to cut costs.
Likewise, analysts can leave to take another role at a competitor whenever they choose if they decide Goldman is not the right place for them.
Analysts who start work in 2013, will no longer be eligible for the two-year program, Wells said.