Goldman Sachs had 49,100 employees at the end of the third quarter of 2022, most of them being recruited during the Covid-19 pandemic, and the job cuts will keep the workforce above the pre-pandemic level
Goldman to cut around 4000 jobs. (Credit: Olga Subach on Unsplash)
US-based investment banking company Goldman Sachs is reportedly planning to lay off around 4000 employees, to mitigate an adverse economic environment in the Wall Street.
According to Reuters’ report, revenues of investment banking companies have declined this year, driven by the slowdown in mergers and share offerings, compared to last year.
Goldman Sachs had 49,100 employees at the end of the third quarter of 2022 http://mirziamov.ru/zaym-bez-otkaza/ , most of them being recruited during the Covid-19 pandemic.
The lay-offs are expected to keep the company’s workforce above the pre-pandemic level, of around 38,300 people at the end of 2019, said the publication citing a regulatory filing.
The company is still in discussions about the number of employees to be affected by the planned layoffs and will finalise the details early next year.
Wells Fargo banking analyst Mike Mayo said: “GS needs to show that its costs are as variable as its revenues, especially after a year when it provided special rewards to top managers during the boom times.
“Goldman Sachs now needs to show that it can do the same when business is not as good and that they live up to the old Wall St. adage that they ‘eat what they kill.”
According to Reuters, investment banks including Morgan Stanley and Citigroup have reduced their workforces in the last few months, due to high-interest rates, Russia-Ukraine war tensions, and inflation.
Goldman Sachs’ current plan follows its decision to lay off around 500 employees in September this year, after it had warned about slow hiring and reducing expenses in July.
The plan would affect hundreds of employees from its consumer business.
In October this year, the company scaled back its loss-making consumer unit Marcus, and was placed under the wealth business as part of a management reshuffle.
Goldman is also planning to stop giving unsecured loans to consumers, reported Reuters.