Goldman Sachs to cut 3,260 jobs

Goldman Sachs will cut 10% of its workforce, or 3,260 jobs, a source familiar with the investment bank's plans told CNN Thursday.

Financial firms have eliminated an estimated 110,000 jobs over the past year, through September, according to the latest employment figures from the Department of Labor.

But the pain has been particularly acute on Wall Street. Investment banks and brokerages there have shed about 11,000 jobs, according to the latest figures from the New York State Department of Labor.

Goldman Sachs (GS, Fortune 500) was one of eight leading banks in the nation that signed up for a government plan that would invest up to $250 billion in ailing financial institutions.

Sources familiar with the bailout plan said in mid-October that Goldman Sachs stood to receive $10 billion of that money to help stabilize the former stand-alone investment bank.

Goldman Sachs and Morgan Stanley (MS, Fortune 500) were the last remaining investment banks on Wall Street before federal officials granted the firms' requests to become bank holding companies last month.

The decision to become commercial banks came as rival brokerages Bear Stearns and Lehman Brothers collapsed in the fallout of the nation's credit crisis. The move allows both institutions to create commercial banking operations that can take deposits