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Goldman Sachs announces biggest-ever layoffs which will hit 3,200 jobs

By Nagasunder in US business news, posted January 9, 2023

Goldman Sachs is launching its biggest-ever series of layoffs by removing as many as 3,200 employees.

More than a third of those affected will be from the banking giant's core trading and banking units, showing how extensive the cuts will be.

Sources said the company in the next few days.

The firm is about to release financial data for a new unit that includes its credit card and installment-lending business, which will hit more than $2 billion in pretax losses.

However, the bank intends to continue hiring, including the induction of the regular analyst class later this year.

Data shows under CEO David Solomon, the global workforce has grown 34 percent since the end of 2018, reaching more than 49,000 as of September 30.

The firm's move to set aside the majority of its annual cut of underperformers during the pandemic also had an impact on the number of firings this year.

Downturns in several business lines, an expensive consumer-banking venture, and an uncertain future for markets and the economy are forcing the bank to cut expenses.

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Mr. Solomon said: “There are a variety of factors impacting the business landscape, including tightening monetary conditions that are slowing down economic activity.

“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 discussions.

Even for those who remain, pay figures are projected to fall, particularly in investment banking.

Source: Bloomberg

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