US bank Goldman Sachs plans to cut up to 3,200 jobs, less than initially discussed, and the announcement could take place as early as this week, a source familiar with the matter said on Sunday, confirming press reports. Contacted by AFP, Goldman Sachs declined to comment.
A source familiar with the matter, however, reported a maximum of 3,200 layoffs, which should be announced this week. Their total number, however, could be slightly lower.
“We are going to have to reduce our size a little,” Goldman Sachs chief executive David Solomon said at a conference organized by the Wall Street Journal in early December.
Deteriorated economic situation
In mid-December, initial press reports had reported 4,000 layoffs, or just over 8% of the 49,100 at this bank. A person familiar with the matter had confirmed that the departures would be “probably a little higher” than what the establishment usually practices, which separates, every year, from “1 to 5%” of its workforce. This source had reported a decision taken “in light of the current economic situation”, which is deteriorating, and while the bank had recruited massively since 2019, leading to a 28% increase in its workforce.
Other Wall Street investment banks have also recently undertaken downsizing. Morgan Stanley is currently laying off around 2% of its employees, or some 1,600 people, according to several US media.
Goldman Sachs, weighed down by the fall in the activity of its investment bankers, had seen its net profit plunge by 44% in the third quarter, but had nevertheless generated better than expected results thanks to its brokerage activity.