Goldman Sachs to cut more than 3,000 jobs this week: Report

The Goldman Sachs Group is expected to lay off more than 3,000 staff across various divisions in the firm from Wednesday (January 11), according to a report. The information is not yet public, and the company refused to comment.

On Sunday (January 8), Bloomberg News reported that Goldman Sachs would lay off 3,200 employees, out of a total headcount of 49,100 employees. Ironically, the company had recruited quite a few employees during the coronavirus pandemic period.

This latest retrenchment move comes after similar actions by other big firms like Meta, Google, Amazon, Twitter, and a host of others in the midst of a tough economic environment as interest rates have risen across the globe.

Job cuts across divisions

One source said that the investment banking division of Goldman Sachs is most likely to be affected as the number of corporate deals has fallen due to the volatility of the global financial markets. The investment banking fees were reduced to $77 billion in 2022, almost half the revenue in 2021, according to Dealogic data.

Many employees in the consumer business of Goldman Sachs are also likely to face the axe since it has been incurring losses. The core trading and banking divisions will also be affected.

Also read: Amazon begins mass layoffs; says ‘some roles will longer be required’

This is just the opposite of the situation last year when employees received big bonus increases and some even got special payouts.

The last major retrenchment was after the collapse of Lehman Brothers in 2008 when  Goldman had laid off more than 3,000 jobs.

According to Layoffs Tracker – an online publication tracking layoffs in the tech and non-tech sector – more than 2,72,000 people working in tech companies across the world lost their jobs since January 2022.

In January 2023 itself, over 28,000 employees across 18 companies have been given pink slips.