Report: Goldman Sachs executives could be mulling additional business cost reductions

Goldman Sachs has long been the envy of the financial world. The bank recruits top graduates from the best business schools throughout the world, and it seemed to adeptly navigate the murky global economy in the wake of the recession.

However, the vaunted institution is reportedly suffering through one of its worst fiscal quarters in more than a decade, and company officials are embarking on an initiative aimed at achieving significant business cost reductions.

In an effort to increase profitability, Goldman officials said this summer the bank would layoff roughly 1,000 workers and cut $1.2 billion in costs by the summer of 2012. The New York Times reports senior executives at the firm are mulling even deeper cuts, though the bank has not commented publicly on any additional cost-cutting measures.

Goldman's third quarter closes on Friday, and executives are considering salary cuts for employees, as well as overhauling programs contributing to an uptick in operating expenses, such as real estate and travel. The bank could announce plans to realize an addition $250 million in cost reductions, according to The Times, as part of its overall plans to overhaul its expenses.

While unnamed sources acknowledged the bank has not made final plans on such proposals, speculation is mounting Goldman executives will address such measures when the bank's quarterly results are announced in mid-October.