Goldman Sachs Group Inc. plans to layoff 10% of its workforce
- ByStartupStory | January 9, 2023
Goldman Sachs Group Inc. is embarking on one of its largest rounds of job cuts ever, with the bank’s leadership going deeper than competitors to shed jobs.
According to a person with knowledge of the situation, the firm is expected to begin the process midweek and the total number of people affected will not exceed 3,200. More than a third of those will almost certainly come from its core trading and banking units, indicating the breadth of the cuts.
According to sources, The company is also about to release financials for a new unit that houses its credit card and installment-lending business, which will lose more than $2 billion in pre tax losses.
Data show that under Chief Executive Officer David Solomon, headcount has increased 34% since the end of 2018, reaching more than 49,000 as of Sept. 30. The firm’s decision to set aside the majority of its annual cut of underperformers during the pandemic also has an impact on the scale of firings this year.
The final job reduction figure is significantly lower than previous proposals in management ranks, which could have resulted in the elimination of nearly 4,000 jobs.
The last major exercise of this magnitude occurred following the 2008 collapse of Lehman Brothers. Goldman had begun a plan to cut over 3,000 jobs, or nearly 10% of its workforce at the time, and top executives had elected to forego bonuses.
Goldman Sachs is an American multinational investment bank and financial services company. This was founded in 1869 by Marcus Goldman and Samuel Sachs. In India, the service company has offices in Mumbai, Bengaluru and Hyderabad.
“There are a variety of factors impacting the business landscape, including tightening monetary conditions that are slowing down economic activity,” Solomon told staff at year-end. “For our leadership team, the focus is on preparing the firm to weather these headwinds.”
The layoffs also come a week before the bank’s annual compensation meeting. Even for those who stay, compensation figures are expected to fall, particularly in investment banking.
Follow Startup Story
Related Posts
