Goldman Sachs, an investment banking company, is set to lay off around 250 employees from 30 banking positions in Asia due to difficult market conditions.
This is the company’s third round of layoffs since late last year. In the first round, in September, it laid off hundreds of employees and earlier this year, in January, around 3,200 employees.
The process began on Wednesday, and mostly China-based bankers faced the brunt of the layoffs, as nine equities capital markets bankers based in Beijing and Hong Kong were let go, including a managing director.
Back in February, the investment banking firm shared its intention to save around $1 billion by reducing expenses. Denis Coleman, CFO, Goldman Sachs, informed investors that one of the ways to become more efficient and save money is by reducing the number of employees. The plan to cut costs involved decreasing the amount of money spent on salaries by approximately $600 million.
Similarly, some other rival banks of Goldsman Sachs like Morgan Stanley and Citibank are also planning to reduce their workforce. Morgan Stanley plans to reduce its workforce by 3000 while Citibank looks to cut 1600 jobs.
These layoffs reflect the challenges faced by Wall Street banks in the current market environment. The decision to reduce the workforce is part of an effort to adapt to difficult market conditions and ensure long-term sustainability.