The investment bank Goldman Sachs plans to cut about 3,260 jobs, that is 10% of its workforce, amid the ongoing downturn in the credit and lending markets. The cut will bring the company’s headcount down from a record high of 32,569 employees, back to 2006-2007 levels.

A person briefed on the plan, requesting anonymity, told the Associated Press that “unprecedented difficult conditions in the financial markets,” brought about the impulsion for the company-wide cuts.

Experts say there will be even more job cuts to come. Head of executive search firm DN Schwartz & Co in New York, and the former head of investment-banking recruiting in London for Goldman Sachs, David Schwartz, said: “We will have more job losses on the Street.”

Paul Bernard, a veteran executive coach and career management adviser who runs his own firm, said that even those that are not at risk of losing their jobs will likely take a hit to their compensation package this year. He said: “Goldman is a sign that everyone has to batten down the hatches.”

In September, the month that saw Lehman Brothers Holdings Inc. file for bankruptcy protection and Merrill Lynch & Co. sell itself to Bank of America Corp., Goldman Sachs and Morgan Stanley received approval to become bank holding companies.

The new status allows Goldman Sachs to grow a large deposit base to help fund its operations, while providing permanent access to borrow money from the Federal Reserve. Before changing its status, Goldman Sachs only had temporary access to that lending option. Moreover, it will likely face increased regulatory scrutiny, which could force it to scale back some of more leveraged and aggressive business units.