Goldman Sachs Group Inc. and seven other overseas banks eliminated 12% of their work force in Japan last fiscal year as a stock market rout crimped trading income and investment banking fees.

Goldman, JPMorgan Chase & Co., Bank of America Corp., Credit Suisse Group AG, Citigroup Inc., BNP Paribas SA, Morgan Stanley and Deutsche Bank AG cut their combined work force in the world's second-largest economy to 7,846 as of March 31, according to Bloomberg data.

Japan's Topix index fell 36% in the period and the value of mergers and stock sales declined as the nation entered its deepest postwar recession. Goldman, B of A and others resumed hiring this fiscal year, buoyed by a recovery in financial markets worldwide.

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