Goldman Sachs lays off up to 4,000 employees: report

Goldman Sachs plans to cut up to 4,000 “low-performing” employees as it looks to cut costs during a profitability crisis, according to a report released Friday.

Senior officers have reportedly asked managers to identify struggling employees for potential cutbacks, Semaphore reported, citing sources familiar with the matter. The layoffs are set to begin early next year and could affect up to 8% of Goldman’s workforce, which currently consists of more than 49,000 employees.

The bank has not made any final decisions about the scope of the projected job cuts, a person familiar with the bank’s thinking told The Post. After the layoffs, the number of bank employees will remain higher than it was before the COVID-19 pandemic.

As The Post reported Dec. 6, Baldman Sachs’ annual performance review process has staff worried this year as workers prepare for potential cutbacks.

“People are very nervous … they are all waiting with anticipation,” a Goldman insider told The Post at the time.

Goldman Sachs declined to comment.

Cuts can affect up to 8% of a company’s workforce.
SOPA/LightRocket images via Gett

The layoffs are part of a suite of cost-cutting measures said to be under consideration at the bank. The Financial Times reports that Goldman Sachs could cut bonuses for its investment bankers by 40% this year – the biggest cut since the Great Recession.

Earlier this week, Bloomberg reported that Goldman was planning at least 400 cuts across its struggling retail banking division.

Goldman Sachs
Goldman Sachs’ profitability has fallen this year.
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David Solomon, CEO of Goldman Sachs, recently noted the challenging global economic conditions heading into 2023, and noted that the bank will look to lower its costs — with headcount cuts among planned initiatives.

“We continue to see headwinds on our expense lines, particularly in the near term,” Solomon said while speaking at a conference call last week, according to Bloomberg. “We have embarked on certain plans to mitigate costs, but it will take some time to realize the benefits. Ultimately, we will remain smart and size the company to reflect the range of opportunities.”

David Solomon
Goldman CEO David Solomon said in October that there was a “good chance” of a recession.
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In October, Solomon told CNBC it was time to “be careful” and warned of a “good chance” the US economy could slip into recession.

Goldman has been engaged in a recruitment drive for the past few years during a campaign led by Suleiman in the retail banking space. The trio of acquisitions, including the purchase of specialist lender GreenSky last year, have boosted the bank’s headcount.

Goldman Sachs
Goldman Sachs is joining other companies in conducting layoffs.
Bloomberg via Getty Images

Goldman is the latest of several companies planning layoffs as Wall Street prepares for a worsening economic outlook. Citigroup recently announced dozens of job cuts in its business, while Barclays laid off about 200 employees and Morgan Stanley cut about 1,600 jobs.

The bank’s profitability has fallen this year, hurt in part by Marcus, its money-losing digital consumer bank. In October, Goldman Sachs announced a major internal change in which investment and commercial banking operations were consolidated into a single unit and Marcus was consolidated into its asset and wealth management division.

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