Goldman Sachs, facing one of its worst quarters in at least a decade, is preparing to expand its cost-cutting initiative by hundreds of millions of dollars.  That most likely means additional job losses at the Wall Street bank. This summer, Goldman said that it would wring out $1.2 billion in costs from its operations by mid-2012.  It would do so by cutting roughly 1,000 jobs, or about 3% of its work force.  But as the market turmoil has weighed on trading and other businesses in recent weeks, senior executives have been debating even deeper reductions. With the company’s third quarter closing on Friday, Goldman has been revising its plans, potentially raising the cuts by as much as $250 million, to $1.45 billion.  Based on its 2010 spending, that would amount to 5% of the firm’s expenses. Along with the possibility of additional layoffs, the firm is expected to reduce employee pay, much of which is handed out later in the year. It is also sharpening its focus on noncompensation expenses, like real estate and travel, according to one of the executives with knowledge of the discussions. The executive warned that no final decision had been made on size of the cuts, and that the numbers could change quickly if the market improved or weakened.  The financial firm may address the matter when it releases its earnings on 10/18/11, he added. Goldman’s move underscores the broader problems on Wall Street.  Financial firms have been under pressure for months, amid the European debt crisis and an economic slowdown in the United States, and a raft of regulatory changes is expected to crimp future profits. But the financial situation has deteriorated in recent weeks, as the market rout has ravaged revenue across Wall Street.  [Dealbook, 9/27/11]