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Thursday, June 1, 2023

Goldman Sachs To Start Cutting Up To 3200 Jobs This Week

Goldman Sachs To Start Cutting Up To 3200 Jobs This Week – This week, Goldman Sachs is expected to initiate one of the largest waves of layoffs in its history, with as many as 3,200 positions cut in an effort to slash expenses. On Wednesday, the bank is set to begin alerting individuals that they would lose their jobs. After coronavirus lockdowns, a large number of corporations engaged in mergers and acquisitions in 2021 and early 2022, benefiting the world’s largest investment banks.

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As interest rates have risen and corporate valuations have fallen, however, the number of takeovers has decreased dramatically. During the boom, Goldman Sachs expanded more swiftly than its competitors and did not implement its customary strategy of terminating its lowest performers. David Solomon, the chief executive officer, informed employees at the end of last month that the changes were essential to “weather the headwinds” caused by rising interest rates.

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The cuts are expected to be concentrated in the investment banking division, where fee income has declined, and in the consumer banking division, where the bank has scaled back its ambitions for the underperforming Marcus brand, although the majority of the bank’s divisions are likely to be affected. The loss of 3,200 jobs would represent almost 7 percent of the bank’s global workforce of 49,000.

The anticipated magnitude of the job reduction was initially revealed by Bloomberg News, which also reported that the bank would continue to hire at junior levels. Goldman had reportedly been considering as many as 4,000 job losses. It is also reported to be considering a 40% reduction in its bonus pool. Solomon will be able to demonstrate action to the bank’s shareholders when the bank releases its full-year earnings on January 17.

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Goldman is anticipated to report its second-best annual profits since 2009, but investors are concerned that the bank’s shares are trading at a discount compared to competitors like Morgan Stanley. Solomon will hold a separate investor day in February to detail a restructuring plan that he expects would improve the performance of the bank.


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