According to sources familiar with the matter, the company has commenced layoffs of managing directors worldwide as part of its efforts to decrease its workforce amidst a decline in deals
Goldman Sachs Group has initiated job cuts as it aims to reduce its headcount of managing directors worldwide due to a decline in deals. According to an anonymous source cited by Bloomberg, the group plans to let go of approximately 125 managing directors, including some in investment banking. Although not all of the layoffs have occurred yet, they are expected to take place soon.
This move is part of Goldman Sachs’ ongoing cost-saving efforts, which have already resulted in multiple rounds of job cuts within the past year. In 2020 and 2021, Goldman Sachs and other banks significantly increased their hiring due to a surge in mergers and acquisitions (M&A) and initial public offerings (IPOs). However, with a slowdown in dealmaking, banks are now facing declining fees.
Data compiled by Bloomberg reveals that deal values have dropped over 40 per cent this year, amounting to $1.2 trillion. Despite being the second-largest global adviser, Goldman Sachs has not maintained its top-ranking position midway through the year, a trend not seen since 2018.
Other banks are also taking measures to adapt to the global slowdown. JPMorgan Chase & Co. is reportedly terminating around 40 investment bankers, while Citigroup Inc. has seen significant companywide job losses. Additionally, Citigroup will slash 30 investment banking positions and 20 corporate banking roles in London.
In recent weeks, several seasoned professionals from Goldman Sachs have joined rivals such as Wells Fargo & Co. and Banco Santander SA. Notably, Tammy Kiely, the tech banking co-head and global head of semiconductors, has made a move to Evercore, according to Bloomberg News.