By the end of this week Goldman Sachs to lay off up to 3.200 people, a high figure, but lower than the 4 cuts indicated previously. The layoffs, according to Reuters, will start on Wednesday 11 January.
Goldman Sachs layoffs
At the end of 2022, the US investment bank could count on more 49 thousand employees. “We'll have to downsize a bit,” CEO David Solomon anticipated at a conference organized by the Wall Street Journal in early December.
According to sources close to the dossier quoted by Reuters, the layoffs should mainly concern the investment banking division, but also consumer credit activities and the consumer business of Goldman Sachs, which fell behind after the bank scaled back plans for its direct-to-consumer Marcus unit. In this context it should be noted that, according to Dealogic data, investment banking fees nearly halved in 2022, with $77 billion earned globally by banks, down from $132,3 billion in the previous year. last year.
Goldman Sachs: bonuses reduced by 40%
Job cuts bring payments up front annual bonuses of the bank, which are usually disbursed by the end of January and which are expected in 2023 decrease by about 40 percent.
Goldman Sachs restarted its own in September annual cut schedule of jobs that had been suspended for two years during the pandemic. The US investment bank usually cuts 1% to 5% of its staff every year. So these new cuts are in addition to those layoffs.
In Wall Street pre-market iGoldman Sachs stock gains 0,3% after rising 1,26% in Friday's session.
