- Staff at Goldman Sachs are bracing for news on whether they will keep their jobs or not.
- Goldman’s redundancy plans will be followed by broader spending.
- Just more than 3,000 employees will be let go.
The United States investment bank undertakes a massive cost-cutting effort that might result in thousands of layoffs from its 49,000-person global staff. Staff at Goldman Sachs are bracing for news on whether they will keep their jobs or not.
The long-awaited job cut at the Wall Street behemoth is expected to be the most significant reduction in headcount.
Most of the bank’s major divisions are likely to be affected, with its under-fire investment banking arm facing the most severe cuts.
Just more than 3,000 employees will be let go, the source who could not be named, said on January 9.
The job cuts began in Asia on Wednesday, when Goldman finished downsizing its private wealth management unit and laid off 11 private bank employees in its Hong Kong and Singapore offices, according to a source familiar with the situation.
According to the source, approximately eight employees were also laid off in Goldman’s research department in Hong Kong, with layoffs continuing in the investment bank and other divisions.
Goldman’s redundancy plans will be followed by broader spending. as it calculates the costs of a significant slowdown in corporate dealmaking and a drop in capital market activity since the Ukraine war.
Goldman had 49,100 employees at the end of the third quarter of 2022, after having to hire during the coronavirus pandemic.
Global investment banking fees nearly halved in 2022, with banks earning $77 billion, down from $132.3 billion the previous year, according to Dealogic data.
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