Goldman Sachs (GS) is requiring some senior employees to transfer to lower-cost cities such as Dallas and Salt Lake City or leave, Bloomberg News reported Friday, citing citing sources familiar with the matter.

The move is focused on shifting management roles away from major financial centers, as part of an ongoing effort to reduce expenses by $1.3 billion while strengthening operations in growing regional offices, the news outlet reported.

The bank's Dallas office has expanded significantly, becoming one of its largest global locations, while hiring at its New York headquarters has stagnated, according to the report.

The restructuring has mainly affected low and mid-level roles, which raises concerns about the need for more senior leadership in these satellite offices, Bloomberg quoted the sources as saying.

Goldman Sachs did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)