Wall St bankers hit by jobs cull and bonus cuts
>
Wall St bankers take a beating: Goldman starts cutting jobs as Credit Suisse halves bonus pool
<!–
<!–
<!–<!–
<!–
<!–
<!–
Goldman Sachs has begun cutting jobs, while Credit Suisse is poised to cut its bonus pool in half ahead of what is expected to be a grim earnings season on Wall Street.
Goldman’s cull began yesterday as bankers in New York, London and beyond braced for news about whether they’ll keep their jobs.
Up to 3,200 of its 49,500 employees are ready for the chop, mostly in the investment banking and trading divisions, as Goldman tries to curb spending.
Cuts: Up to 3,200 of Goldman Sachs’ 49,500 employees will be laid off – with most of the cuts in investment banking and trading divisions
Credit Suisse is considering halving its bonus pool for 2022, capping a dismal year in which it had to raise £3.2bn after a string of losses.
The moves come ahead of the main US earnings season, with JP Morgan, Bank of America, Citigroup and Wells Fargo set to report fourth-quarter earnings tomorrow.
Goldman Sachs and Morgan Stanley follow on Tuesday. All are expected to report lower earnings amid a slowdown hitting investment banking.
Analysts fear a rise in loan loss provisions to prepare for soured loans as the US slides into recession.
Markets.com’s Neil Wilson said: “Investors will be watching closely for bad loan news. Net interest income is likely to be strong, but can growth be sustained?’
He added: “As far as bankers’ bonuses go, don’t expect them to drive around London in new Porsches.”
It’s all a sharp turnaround in fortunes for the world’s largest investment banks, which boomed in 2021 and early 2022, benefiting from post-lockdown M&A.
That sparked a fierce war for talent, with Wall Street offering first-year employees $110,000 (£91,000) to join them.
But acquisitions fell as interest rates rose and corporate valuations plummeted.