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HomebankingGoldman Sachs plans fresh round of job cuts for underperformers: FT

Goldman Sachs plans fresh round of job cuts for underperformers: FT

BENGALURU/NEW YORK – Goldman Sachs is planning another round of job cuts for employees who are deemed underperformers, which could come as soon as late October, the Financial Times reported on Thursday, citing people familiar with the matter.

The plan would typically result in between 1 per cent and 5 per cent of company-wide employees losing their jobs and Goldman is targeting a number at the lower end of the range in parts of its core investment banking and trading divisions, according to the report.

This is an annual exercise that the bank does, as part of performance reviews, according to a source familiar with the matter.

The bank reinstated the review in 2022 after it was halted during the pandemic in 2020 and 2021.

The bank cut 500 employees in September 2022, Reuters had reported earlier, citing sources.

In June, Goldman’s managing directors were invited to meetings to receive an ominous message: Take even more painful steps to cut costs.

Belt-tightening on the agenda for meetings of Goldman’s top executives is another sign that the firm’s ongoing push to cut US$1 billion (S$1.37 billion) in costs is now accelerating as managers target smaller and smaller line items and contemplate more job cuts

Goldman reduced its headcount by about 3,200 in the first quarter in its biggest round of layoffs since the 2008 financial crisis.

It also cut about 250 jobs in May.

The Wall Street giant’s profit slumped 60 per cent in the second quarter, missing estimates, as write-downs on its consumer businesses and real estate investments weighed on earnings. REUTERS

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