Goldman Sachs is set to lay off several hundred employees as part of its annual talent review process aimed at addressing low performers. This marks a return to performance-based job reductions after a two-year hiatus due to the COVID-19 pandemic. A spokesperson for the bank indicated that these annual talent reviews are routine, and in the previous year, job losses ranged from 1% to 5% of the workforce [89b2de26].
As of June 30, 2023, Goldman Sachs employed approximately 44,300 people globally. The decision to cut jobs comes in the wake of multiple workforce reductions in 2023, driven by a downturn in deal-making activity and high interest rates. Despite these challenges, the bank reported a significant profit increase in July 2023, attributed to strong debt underwriting and trading, which contributed to a 32% rise in its shares this year [89b2de26].
Earlier reports suggested that layoffs could affect over 1,300 employees, which would represent about 3% to 4% of the workforce. However, Goldman Sachs has disputed these figures, asserting that such estimates are inaccurate [89b2de26]. The bank's approach reflects a broader trend in the financial sector, where companies are adjusting their staffing in response to economic pressures, particularly as deal-making activity remains below historical norms [89b2de26]. As Goldman Sachs navigates these changes, the impact on its employees and the overall market dynamics remains a critical concern [89b2de26].