According to two persons familiar with the matter, Goldman Sachs Group (GS.N) will begin eliminating thousands of employees throughout the business beginning on Wednesday, as the company prepares for a challenging economic climate in the next year.
According to one of the sources, the number of people who will lose their jobs is likely to be somewhat more than 3,000; however, the precise figure has not yet been decided.
Due to the fact that the material was not yet available to the general public, the sources could not be identified. Goldman Sachs did not want to comment, so they refused.
On Sunday, Bloomberg News published an article stating that Goldman will be eliminating around 3,200 workers.
At the conclusion of the third quarter, Goldman had a total of 49,100 workers. This was after the company had added considerable numbers of staff members during the coronavirus epidemic. continue reading
According to one of the sources, the layoffs would most certainly impact the main departments of both banks, although they are expected to be concentrated in the investment banking branch of Goldman Sachs. Because of the instability of the global financial markets, institutional banks have seen a significant decrease in the amount of corporate deal making activity.
According to the sources, Goldman Sachs is expected to cut down its ambitions for its direct-to-consumer subsidiary Marcus, which would likely result in the elimination of hundreds of positions inside the company’s money-losing consumer sector.
According to two independent sources, the chief executive of the bank, David Solomon, sent a year-end voice message to employees in which he warned them that there would be a decrease in headcount in the first part of January. In response to the memo, Goldman Sachs refused to comment.
The layoffs come in advance of the annual bonus payments that the bank makes, which are typically distributed later in January and are anticipated to be reduced by almost forty percent.
In September, the financial institution resumed its regular program to reduce the number of employees after putting it on hold for two years due to the epidemic.
The financial powerhouse on Wall Street reduces its workforce by between one and five percent on an annual basis, on average. These latest cutbacks are in addition to the layoffs that were already announced.
According to statistics provided by Dealogic, investment banking fees dropped by almost half in 2022, with banks earning a total of $77 billion worldwide. This figure was down from $132.3 billion obtained the previous year.
According to statistics provided by Dealogic, the overall value of mergers and acquisitions around the globe had dropped by 37% to $3.66 trillion by the 20th of December, after reaching an all-time high of $5.9 trillion in the previous year.
According to the statistics provided by Dealogic, as of the end of December 2022, banks had completed equity capital markets (ECM) deals totaling $517 billion. This represents the lowest level since the early 2000s and a reduction of 66% from the deal bonanza that occurred in 2021. continue reading