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Goldman plans to axe 4000 jobs.

 

Goldman building

Goldman Sachs is preparing to lay off as many as 3,900 employees from January as chief executive David Solomon seeks to boost the bank’s profitability amid economic headwinds. The plans are still being drawn up, and the target for a cull of «up to 8 per cent» of its 49,000 global workforce could be slimmed down if the business outlook improves, according to three people familiar with the talks. Investment banking fees have tumbled 35 per cent in the year to date, according to Refinitiv data. Goldman is under particular pressure to improve margins because Solomon is trying to boost the bank’s stock market valuation, which has lagged behind peers such as Morgan Stanley for years.


Reducing expenses is essential for the bank after net profits slid 44 per cent in the first nine months of the year, causing it to fall short of its crucial 14 per cent return on tangible equity target, a measure of profitability. The shares have fallen almost 10 per cent this year. Goldman declined to comment but Solomon hinted at job cuts at the bank’s financial services conference last week. The Financial Times revealed this week that Goldman is also preparing to slash the bonus pool for its 3,000 investment bankers by 40 per cent or more.
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  1. Tim17 December 2022 at 16:15

    They also need to change some or all of the bigger salaries in the company. Everyone should enjoy the good times and also be there for the bad times. If people get sacked but a handful of executives receive huge pays then it doesn't look good at all.

    ReplyDelete
  2. Don17 December 2022 at 18:06

    An expected move on their part. Considering how badly things have gone for
    Goldman in the last 12 months it's a wonder they didn't do this sooner.

    ReplyDelete

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