USA: Goldman Sachs, one of the top international investment banking, securities and investment management firms, is looking to let go of 4,000 staff members.
As per reports, the company's top management has instructed managers to indicate possible cost-cutting targets as it seeks to streamline cash outflows ahead of the impending slowdown. Layoffs are estimated in early 2023.
Tech firms and international banks both hired and invested aggressively during the pandemic. Many people thought that the boom would continue. However, businesses have had to reevaluate due to inflation, recession concerns and poor quarterly results.
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The long list of organizations that have let go employees or are planning to do so to cut costs now includes Goldman Sachs.
A slowing business environment for dealmaking and falling asset prices are responsible for the anticipated layoffs at Goldman Sachs.
The costly expansion into the retail banking industry is said to have hit the New York-based bank significantly.
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Regarding the identification of "underperforming" employees and possible job cuts, the company is yet to issue any official statement.
The firm's anticipated layoffs go above and beyond the annual exercise of removing "underperforming" workers. Goldman has made several acquisitions recently to create a more diversified business.
Its workforce has grown by 34% since 2018 and will exceed 49,000 in the third quarter of 2022. Now, 8% of the bank's employees may lose their jobs.
David Solomon, who became Goldman Sachs' new chairman and CEO in October 2018, is focusing on reducing the firm's input costs.
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To manage headcount and control costs, he is scaling back the company's consumer banking goals and reviewing other businesses. Compensation for investment bankers at Goldman Sachs is also set to be slashed by 40%, the biggest cut since 2008.