NEW YORK: A source familiar with the situation claimed on Sunday that Goldman Sachs aims to remove 3,200 workers and may announce this as soon as this week.
An AFP request for comment was ignored by the American investment bank.
According to a person with direct knowledge of the situation, a maximum of 3,200 positions will be cut, which is less than the 4,000 jobs reported in the news last month and possibly even a little less.
The increased number of 4,000 would represent around 8% of the bank’s workforce.
Each year, Goldman Sachs targets underperforming employees and reduces employment by one to five percent.
Given the uncertain economic outlook and the increase in Goldman’s staffing in previous years, this year’s culling will be more extensive than usual, a person with knowledge of the situation told AFP in mid-December.
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At the end of October, Goldman had a staff of 49,100, an increase of about 30% from the end of 2019 after hiring drives and acquisitions.
The announced job losses coincide with a sharp decline in fees associated with initial public offerings and a gloomy outlook for merger and acquisition advisory services in 2023 due to economic instability reported by Goldman Sachs and other investment banks.
According to two persons familiar with the decision, Goldman Sachs Group (GS.N) will begin laying off thousands of employees throughout the company on Wednesday as it braces for a challenging economic climate in the next year.
One of the sources estimated that a little over 3,000 jobs would be lost, but the exact figure is still unknown.
Since the material had not yet been made public, the sources could not be identified. Goldman Sachs opted not to respond.
On Sunday, Bloomberg News reported that Goldman would cut approximately 3,200 jobs.
At the end of the third quarter, Goldman had 49,100 workers, up significantly from the beginning due to the coronavirus epidemic. View More
One of the individuals stated that the layoffs should primarily target Goldman Sachs’ investment banking division, though they are likely to hit most of the bank’s major departments. Because of the erratic nature of the world’s financial markets, institutional banks have seen a significant slowdown in corporate dealmaking.
Following the company’s decision to scale back ambitions for its direct-to-consumer unit Marcus, hundreds of jobs are also likely to be cut from Goldman Sachs’ loss-making consumer division, according to the sources.
According to two different sources, the bank’s CEO David Solomon warned personnel in a year-end voice memo that a workforce decrease will occur in the first half of January. On the document, Goldman Sachs declined to comment.
The bank’s annual bonus payouts, which are typically made later in January and are anticipated to be lowered by approximately 40%, are made before the job layoffs.
In September, the bank resumed its yearly job-cutting plan that had been suspended for two years due to the pandemic.
Each year, the Wall Street behemoth reduces its workforce by 1% to 5% on average. On top of those layoffs, there are now these fresh cuts.
According to Dealogic data, banks worldwide earned $77 billion in investment banking fees in 2022, down from $132.3 billion the previous year.
According to Dealogic data, the overall value of mergers and acquisitions worldwide fell 37% to $3.66 trillion by December 20 after reaching an all-time high of $5.9 trillion the previous year. View More
Bank executives According to Dealogic data, accomplished equity capital markets (ECM) transactions totaled $517 billion by late December 2022, the lowest level since the early 2000s and a 66% decrease from the deal bonanza of 2021. View More