Goldman Sachs to slash 3,200 jobs amid cost-cutting push


Goldman Sachs, one of the world’s leading investment banks, is preparing to cut about 3,200 jobs this week as part of its annual performance review and cost-cutting strategy, according to multiple sources. The job losses will affect employees across all divisions and regions, but will be more concentrated in the investment banking and consumer businesses, where the bank has faced lower revenues and higher expenses.

Goldman Sachs to go deeper than rivals in job cuts

The planned job cuts will be one of the largest in Goldman Sachs’ history, representing about 7% of its global workforce of 49,000. The bank has already reduced its headcount by about 3,200 in the first quarter of 2023, and by another 250 in May. The bank also reinstated its practice of firing the lowest performers last year, after suspending it during the pandemic in 2020 and 2021.

Goldman Sachs to slash 3,200 jobs amid cost-cutting push
Goldman Sachs to slash 3,200 jobs amid cost-cutting push

The bank’s decision to go deeper than its rivals in shedding jobs reflects its ambition to improve its profitability and efficiency, as well as to address the challenges posed by rising interest rates, lower deal activity, and increased competition. Goldman Sachs is expected to report its second-best annual profits since 2009, but its shares are trading at a discount compared to peers like Morgan Stanley.

Goldman Sachs to announce job cuts as soon as Wednesday

The bank is expected to begin informing employees who will lose their jobs as soon as Wednesday, according to the Financial Times. The process will be completed by the end of the week. The bank will also continue hiring at junior levels, as it seeks to replenish its talent pool and reduce its reliance on expensive senior staff.

The job cuts will come ahead of the bank’s fourth-quarter and full-year earnings announcement on January 17, 2023. The bank is also expected to slash its bonus pool by up to 40%, as it tries to rein in its compensation costs, which account for about half of its total expenses.

Goldman Sachs to unveil restructuring plan in February

The job and bonus cuts will also set the stage for a major restructuring plan that the bank’s chief executive, David Solomon, will unveil at an investor day in February. The plan will outline how the bank intends to boost its returns on equity, diversify its revenue streams, and expand its presence in new markets and segments.

One of the key areas that the bank will focus on is its consumer business, which includes the online savings platform Marcus and the Apple Card credit card. The bank has scaled back its ambitions for Marcus, after it failed to meet its growth targets and faced regulatory scrutiny. The bank will also seek to grow its wealth management and asset management businesses, as well as its digital offerings.


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