Goldman Sachs, a global investment banking and financial services firm, is reportedly preparing for its largest round of layoffs to date, which are expected to affect thousands of employees starting this week.
While one source told Reuters that the number of job cuts will be just over 3,000, Bloomberg reports that the final figure may be as high as 3,200.
The majority of the layoffs are expected to come from the bank’s core trading and banking units. This is due to a slowdown in corporate deal making activity at institutional banks amid increased market volatility. The final number of layoffs has not yet been confirmed.
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As of the end of Q3, Goldman Sachs had a workforce of approximately 49,000 employees, following the addition of a large number of staff during the COVID-19 pandemic.
According to sources cited by Reuters, Goldman Sachs CEO David Solomon had previously warned employees about potential layoffs in a year-end voice memo. The bank has not commented on the memo.
The news of Goldman Sachs’ layoffs comes in response to the deteriorating global economic climate, which has prompted many companies across various industries to reassess their expansion plans and focus on cost-cutting measures. While tech industry workers have been among the hardest hit by job losses, those in the financial services sector have also been affected. In December 2022, Morgan Stanley laid off approximately 2% of its total workforce.
Other major firms such as Citigroup and Barclays have also reduced their staff in light of declining revenue and concerns about a potential global recession. The situation for employees in industries such as IT and financial services could potentially worsen if mid-sized firms follow the lead of larger companies in an effort to protect themselves against economic slowdown.