Goldman Sachs to lay off up to 1,800 employees as part of annual review process
Goldman Sachs is preparing to lay off 3 to 4 percent of its workforce, representing about 1,300 to 1,800 employees, as part of its routine annual evaluation process, according to a report from the Wall Street Journal.
The layoffs, which have already begun, are expected to affect several departments within the bank, the report said.
Goldman Sachs spokesman Tony Fratto described the process as “normal, standard and customary,” and stressed that annual talent reviews are a regular part of the bank’s operations. Despite the reductions, Fratto noted that the bank’s total headcount is expected to increase through the end of the year compared to 2023.
The report also noted that similar staffing moves are common at large banks, which routinely cut underperforming employees to contain costs in a challenging economic environment. In the first quarter of this year, the largest U.S. banks collectively cut more than 5,000 jobs, with Citigroup leading the way by cutting 2,000 positions.
Historically, Goldman Sachs’ annual review process has resulted in staff reductions ranging from 2 percent to 7 percent, depending on the bank’s financial performance and market conditions. Last year, the bank implemented a 6 percent reduction in January, followed by additional reductions in May and the fall.
In a related development, Goldman Sachs recently lowered the probability of a U.S. recession to 20 percent from 25 percent, citing positive retail sales and improving jobless claims data. The bank’s economists suggest that a strong jobs report, due Sept. 6, could further reduce the recession risk to 15 percent, where it was before a recent revision.
First publication: Aug 31, 2024 | 11:33 AM IST