More than 1,300 workers from Goldman Sachs’ global workforce will be let go as part of the company’s yearly performance review process.
The Wall Street Journal (WSJ), citing unidentified sources, said on Friday, August 30, that the bank is anticipated to make layoffs across all of its businesses. The layoffs have already begun and are expected to continue into the fall.
The COVID-19 outbreak caused the investment bank to pause performance-related job layoffs for two years, but they resumed in 2022.
Goldman Sachs spokesperson Tony Fratto told the WSJ, per the report: “Our annual talent reviews are normal, standard and customary, but otherwise unremarkable.”
Fratto stated that the bank’s overall workforce is anticipated to stay greater at the conclusion of the year than it was in 2023.
According to the research, Goldman Sachs’ yearly review process normally results in workforce reductions of 2% to 7%.
The exact proportion of staff attrition varies based on the bank’s financial outlook and general market conditions.
The research also made clear that major banks generally make similar workforce modifications, reducing unproductive employees on a regular basis in order to control expenses in a difficult economic climate.
The biggest US banks eliminated roughly 5,000 positions in the first quarter of this year, with Citigroup leading the way with 2,000 layoffs.
The largest cut was made by Citigroup, which, during the quarter cut over 2,000 positions as part of a reorganisation meant to increase earnings and cut down on management levels.
Goldman has continued to shift away from Main Street banking and has been concentrating more on investments, banking, and other activities that are more orientated towards the markets since it sold its GreenSky platform.
We earlier reported that Cisco will reportedly let off roughly 4,000 people in its second round of job layoffs this year, as the world’s largest networking corporation focuses on artificial intelligence.
