Wall Street banking giant, Goldman Sachs Group will begin cutting thousands of jobs across the firm on Wednesday as it prepares for a difficult economic environment in the coming year, according to reports quoting sources familiar with the matter.
According to one of the sources, the job cuts are expected to total just over 3,000, but the exact number has yet to be determined.
The sources could not be identified because the information had not yet been made public. Goldman Sachs did not respond to a request for comment.
According to Bloomberg News, Goldman will cut approximately 3,200 jobs.
Goldman had 49,100 employees at the end of the third quarter, after hiring heavily during the coronavirus pandemic.
According to one of the sources, the layoffs are likely to affect most major divisions of the banks, but will focus on Goldman Sachs' investment banking division. As a result of volatile global financial markets, institutional banks have seen a significant slowdown in corporate dealmaking activity.
According to the sources, hundreds of jobs are also likely to be cut from Goldman Sachs' loss-making consumer business as the firm scales back plans for its direct-to-consumer unit Marcus.
According to two separate sources, the bank's CEO, David Solomon, sent a year-end voice memo to employees warning of a headcount reduction in the first half of January. Goldman Sachs did not respond to a request for comment on the memo.
The layoffs come ahead of the bank's annual bonus payments, which are usually made in late January and are expected to be 40% lower.
In September, the bank resumed its annual job-cutting program, which had been put on hold for two years due to the pandemic.
Every year, the Wall Street behemoth reduces its workforce by 1% to 5%. These new layoffs are on top of the previous ones.
According to Dealogic data, investment banking fees nearly halved in 2022, with banks earning $77 billion globally, down from $132.3 billion the previous year.
According to Dealogic data, the total value of mergers and acquisitions globally had dropped 37% to $3.66 trillion by December 20 from an all-time high of $5.9 trillion the previous year. learn more
According to Dealogic data, banks had executed $517 billion in equity capital markets (ECM) transactions by late December 2022, the lowest level since the early 2000s and a 66% drop from the deal bonanza of 2021.
(Source:www.businesstoday.in)
According to one of the sources, the job cuts are expected to total just over 3,000, but the exact number has yet to be determined.
The sources could not be identified because the information had not yet been made public. Goldman Sachs did not respond to a request for comment.
According to Bloomberg News, Goldman will cut approximately 3,200 jobs.
Goldman had 49,100 employees at the end of the third quarter, after hiring heavily during the coronavirus pandemic.
According to one of the sources, the layoffs are likely to affect most major divisions of the banks, but will focus on Goldman Sachs' investment banking division. As a result of volatile global financial markets, institutional banks have seen a significant slowdown in corporate dealmaking activity.
According to the sources, hundreds of jobs are also likely to be cut from Goldman Sachs' loss-making consumer business as the firm scales back plans for its direct-to-consumer unit Marcus.
According to two separate sources, the bank's CEO, David Solomon, sent a year-end voice memo to employees warning of a headcount reduction in the first half of January. Goldman Sachs did not respond to a request for comment on the memo.
The layoffs come ahead of the bank's annual bonus payments, which are usually made in late January and are expected to be 40% lower.
In September, the bank resumed its annual job-cutting program, which had been put on hold for two years due to the pandemic.
Every year, the Wall Street behemoth reduces its workforce by 1% to 5%. These new layoffs are on top of the previous ones.
According to Dealogic data, investment banking fees nearly halved in 2022, with banks earning $77 billion globally, down from $132.3 billion the previous year.
According to Dealogic data, the total value of mergers and acquisitions globally had dropped 37% to $3.66 trillion by December 20 from an all-time high of $5.9 trillion the previous year. learn more
According to Dealogic data, banks had executed $517 billion in equity capital markets (ECM) transactions by late December 2022, the lowest level since the early 2000s and a 66% drop from the deal bonanza of 2021.
(Source:www.businesstoday.in)
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