Is Goldman Sachs preparing to cut jobs?

That the market slowdown has affected investment banks is quite clear. Now the Goldman Sachs Group is reportedly preparing to axe about 200+ jobs as part of a budget-tightening exercise. The layoff may impact employees across all senior levels, including managing directors and partners, according to a report by the Wall Street Journal.

Early this year, it was revealed to investors that the Bank would work on improving efficiency, and that measures taken would include reduction of headcount as well as cost cuts. The Bank, at the time, had also revealed that it was not likely to replace the employees who would be asked to leave. Its cost-cutting plans included about $600 million in payroll reduction.

In January, the Bank had warned its employees of upcoming layoffs. At the time, Reuters had reported that David Solomons, chief executive, Goldman Sachs, had sent a voice memo warning the staff about the upcoming layoffs. These job cuts were announced just before the company gave out its annual bonuses which are reportedly being cut by 40 per cent this year.

It is a regular practice at Goldman Sachs to lay off about one to five per cent of its workforce annually, but in January the Bank had informed of its intentions to cut more jobs over and above the usual five per cent.

At the end of March 2023, the Bank had about 45,400 members in its staff.