A Week After Morgan Stanley Layoffs, Goldman Sachs Axes 4,000 Jobs
Goldman Sachs Group Inc (NYSE: GS) plans to lay off around 4,000 employees as it struggles to navigate a difficult economic environment, though no final list has been drawn up.
As per Semafor, managers have been asked to identify low performers.
After adding significant staff during the pandemic, the bank had around 49,000 employees at the end of the third quarter. Headcount will remain above pre-pandemic levels, which stood at 38,300 at the end of 2019.
In a typical year, 2%-5% of Goldman lays off or receives no bonus — "zeroed out" in industry parlance.
Related: Goldman Plans Combining Investment Banking and Trading Units In Major Organizational Overhaul.
The dealmaking and fundraising activities have slowed down, and the Wall Street bank finds it challenging to meet profitability targets.
In September, Goldman Sachs announced laying off about 500 bankers. The CFO also said that it would slow its hiring pace and be slower in replacing departing staff due to economic uncertainty.
Almost a week back, another Wall Street giant, Morgan Stanley (NYSE: MS), trimmed its workforce by about 2%, affecting around 1,600 positions.
Switzerland's second-largest bank, Credit Suisse Group AG (NYSE: CS), said it was shedding 2,700 full-time staff, accounting for about a third of its planned cuts and a fifth of its 52,000 global employees.
It expects the total staff base to shrink to 43,000 by the end of 2025 through further job cuts and natural attrition.
Price Action: GS shares are down 0.98% at $346.39 on the last check Friday.
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