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Goldman Sachs cuts nearly 4,000 jobs as business slows

By Nagasunder in US business news, posted December 19, 2022

Goldman Sachs is planning big job cuts as it deals with a severe business downturn.

According to the BBC, the investment bank is planning layoffs that could affect up 4,000 people, around to eight percent of its global workforce.

The cuts would take effect early next year and the specifics of how different offices and parts of the business will be impacted are still being worked out.

The company did not respond to requests for comment.

However, CEO David Solomon has repeatedly expressed concerns about the economic outlook in recent months.

He said clients were cautious which meant the environment was forcing him to consider cost cuts.

This year, investment banking revenues have fallen as economic uncertainty and a market downturn dampen mergers and stock listings.

At Goldman, overall revenues fell 20 percent in the first nine months of the year, compared to a successful 2021. Profits fell even more abruptly.

Goldman, which employs nearly 49,000 people globally, already cut hundreds of jobs earlier this year, resuming an annual culling of low-performers that had stopped during the pandemic.

Bonuses are also likely to be smaller this year. The final figures for job cuts are still being resolute.

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"We continue to see headwinds on our expense lines, particularly in the near term," Mr. Solomon said at a conference last week.

"We've set in motion certain expense mitigation plans, but it will take some time to realize the benefits. Ultimately, we will remain nimble and we will size the firm to reflect the opportunity set."

Source: BBC

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