There is talk of a second round of layoffs at Goldman Sachs. The Group had discontinued layoffs due to the pandemic, after a first round of cuts earlier this year. At the time the Bank had said layoffs will be paused till next year. As part of a major rehaul, the Bank had revealed its intention to cut operating costs by about $1.3 billion over the next three years.
It is reported that this second round of layoffs will witness about 400 positions being cut, not more. In all, only about one per cent of the total workforce will be threatened this time. The Bank is also considering moving more of its employees to more economical locations, such as Dallas, Slat Lake City, and Bengaluru.
The cuts will affect various divisions and locations across the Bank. The Bank had set a goal of reducing expenses by a billion dollars at the beginning of the year. Since it seems to have no intention of reducing its expenditure on technology, the one area where it can really cut costs, is by reducing the headcount, feel experts.
Goldman Sachs is not the only bank that is facing the brunt of the pandemic-induced economic slowdown. In June, Deutsche Bank had laid off about 18,000 employees across the globe, as a result a significant number of its employees in Bengaluru, India were also impacted. In August, HSBC had laid off about 1,500 employees from its back offices in India.