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Goldman Revives Job Cut Plan After Coronavirus-Induced Pause

·2 min read

The Goldman Sachs Group GS is resuming plans to lay off about 1% of its workforce, which was earlier suspended following the coronavirus scare. About 400 jobs will be eliminated from across the company with no specific positions being affected more than others. The news was first reported by Bloomberg.

“At the outbreak of the pandemic, the firm announced that it would suspend any job reductions,” said a spokesman for Goldman Sachs. “The firm has made a decision to move forward with a modest number of layoffs.” he added.

Per the article, most the cuts to be undertaken are from back-office roles that had been “folded into bigger money-making divisions as part of an earlier reorganization”.

With the pandemic continuing around the world amid rising chances of being hit by the second wave, major banks including Citigroup C, HSBC Holdings HSBC and Wells Fargo WFC have been forced to resume job cuts. This is because of the mounting pressure for cost reduction and challenging revenue scenario.

Notably, these layoffs form part of the $1.3 billion run-rate expense savings in three years announced during the Investors Day held in January. At the time, the investment banking giant had also unveiled plans to undertake reshuffling of the business units and a number of changes in management.

Goldman has put this move in motion as well. Per the plan, the merchant banking and asset management businesses are likely to be merged into a single segment. Eric Lane and Julian Salisbury will head the new unit.

Goldman seems on track to bolster its performance by focusing on capitalizing on new growth opportunities through several strategic investments, including the digital consumer lending platform. However, it continues to face probes and queries from several federal agencies.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

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