According to sources, Goldman Sachs will really be making 3,200 job cuts and may perhaps announce this during this week. The American investment bank has not yet made a formal statement regarding the situation. Less than the 4,000 positions indicated in the media last month, a source told AFP that a maximum of 3,200 will be cut. The higher number of 4,000 would represent around 8% of the bank’s personnel.
At Goldman Sachs, laying off employees is a standard procedure that targets underperforming employees. The company typically reduces its headcount by one to five percent annually. A person with knowledge of the situation told AFP in mid-December that the company will terminate more people than usual this year due to the current state of the global economy and the growth of its workforce in previous years.
Goldman Sachs and numerous other investment banks have experienced a sharp decline
In his customary year-end note to colleagues, US investment bank CEO David Solomon revealed his plan to eliminate employment in December. The headcount reduction is expected to occur in the first half of January, Solomon stated. “We are conducting a careful review,” Solomon had said. After hiring drives and acquisitions, Goldman’s employees grew to 49,100 at the end of October, an increase of roughly 30% from the end of 2019.
Goldman Sachs and numerous other investment banks have experienced a sharp decline in fees related to initial public offerings, which has resulted in significant industry-wide job losses. Due to the uncertain economy, the outlook for merger and acquisition consulting in 2023 is also not good. However, despite rising interest rates, the corporation is anticipated to post significant profits in 2022 and 2023, according to a survey by S&P Global Market. According to Guardian, analysts forecast that it would earn roughly $12 billion in net profits in 2022 and $13 billion in 2023.
