Goldman Sachs to lay off up to 1,800 employees amid annual review process
Goldman Sachs is preparing to lay off between 3 and 4 per cent of its workforce—amounting to about 1,300 to 1,800 employees—as part of its routine annual review process, according to a report by the Wall Street Journal.
The layoffs, which have already commenced, are expected to impact various divisions within the bank, the report said.
A spokesperson for Goldman Sachs, Tony Fratto, described the process as “normal, standard, and customary,” emphasising that the annual talent reviews are a regular part of the bank’s operations. Despite these reductions, Fratto noted that the bank’s overall headcount is projected to increase by the end of the year compared to 2023.
The report also highlighted that similar workforce adjustments are common across major banks, which routinely trim underperforming staff to manage costs in a challenging economic environment. In the first quarter of this year, the largest US banks collectively cut over 5,000 jobs, with Citigroup leading the reductions by eliminating 2,000 positions.
Historically, Goldman Sachs’ annual review process has led to workforce reductions ranging from 2 to 7 per cent, depending on the bank’s financial performance and market conditions. Last year, the bank implemented a 6 per cent reduction in January, followed by additional cuts in May and the autumn.
In a related development, Goldman Sachs recently lowered its probability of a US recession from 25 per cent to 20 per cent, citing positive retail sales figures and improving unemployment claims data. The bank’s economists suggest that a strong jobs report, expected on September 6, could further reduce the recession risk to 15 per cent, where it had been prior to a recent revision
First Published: Aug 31 2024 | 11:33 AM IST