US bank Goldman Sachs plans to cut up to 3,200 jobs, fewer than initially mentioned, and the announcement could take place as soon as this week, a source familiar with the matter said on Sunday, confirming media reports. Contacted by AFP, Goldman Sachs declined to comment.
However, a source familiar with the matter reported a maximum of 3,200 layoffs, which should be announced this week. Their total number, however, could be slightly lower. “We’re going to have to downsize a little bit,” Goldman Sachs Chief Executive David Solomon said at a conference call in early December. Wall Street Journal. As of mid-December, initial press reports had reported 4,000 layoffs, or just over 8% of the 49,100 at this bank.
28% increase in workforce since 2019
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, each year, from “1 to 5%” of its staff. 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 embarked on downsizing. Morgan Stanley is currently laying off about 2% of its employees, or about 1,600 people, according to various US media. Goldman Sachs, weighed down by declining activity from its investment bankers, had seen net profit plummet 44% in the third quarter but had nonetheless delivered better-than-expected results from its brokerage business.
Source: BFM TV
