The company is conducting a review of headcount and holding discussions about layoffs, top managers have been asked to identify potential cost-reduction targets, and the final number of job cuts has not been determined
Goldman Sachs to cut more jobs this month. (Credit: Olga Subach on Unsplash)
Goldman Sachs Group chief executive officer David Solomon, in his year-end message to staff, unveiled his plans to implement a fresh round of job cuts in the coming weeks.
Last month, Reuters reported that the US investment bank is planning to lay off around 4,000 employees to mitigate an adverse economic environment in the Wall Street.
According to a Bloomberg report, the company is conducting a review of headcount and holding discussions about layoffs, which are expected to occur in the first half of this month.
The top managers have been asked to identify potential cost-reduction targets, and the final number of job cuts has not been determined, said the report.
Goldman Sachs Group chief executive officer David Solomon said: “We are conducting a careful review and while discussions are still ongoing, we anticipate our headcount reduction will take place in the first half of January.
“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.”
According to a regulatory filing, Goldman has increased hiring throughout 2021, employing 49,100 people at the end of Q3 2022, from 43,000 during the same quarter of 2021.
Bloomberg said that the company has made an expensive entry into the consumer banking space, and subsequently retreated.
Its expenditure on technology and integrating operations have increased its costs this year.
The report said that Morgan Stanley, Credit Suisse, and Barclays have all either already fired staff or announced that they plan to do so in the coming months.
Also, some small firms have even completed multiple rounds of terminations.
Morgan Stanley and Citigroup have reduced their workforces in the last few months, due to high-interest rates, Russia-Ukraine war tensions, and inflation, reported Reuters.