Goldman eliminated 2,900 positions last year because of the poor business environment. Just last month, the firm cut 40 options traders. While Goldman managed to preserve its position as the global leader for mergers, the tough economic times threaten the firm's profitability. Goldman's share of all investment-banking fees paid to Wall Street shrunk last year, as rival commercial banks that combine lending with stock and bond underwriting and merger advice won a bigger share of the business. In 2001, Goldman was the top fee earner, with 7.2 percent of global investment-banking fees, according to consulting firm Freeman & Co. Last year, the firm fell to fifth place, with just 5.4 percent of the fees. Paulson is betting that by cutting costs through layoffs and lean bonuses for all – except star employees – the firm will be able to remain profitable and weather the downturn without jeopardizing its reputation as a perennial market leader.