As per a Bloomberg report, Goldman Sachs is planning a new lay off, while entering the New Year. The decision will affect nearly 4,000 roles at the global investment bank giant. Recently, the bank laid off hundreds of people as per its new performance grading system.
Reportedly, the possible reason for the redundancies is to contain a slump in profit and revenue as the bank is also considering a significant cut in the annual bonus pool this year. The bank also warned in July that it might slow down hiring and cut expenses to tackle the worsening economic outlook.
Furthermore, the bank has also hinted that it may dial back its plans for October for Marcus, the consumer subsidiary that is losing money. According to prior reports, Goldman also intends to discontinue issuing unsecured consumer loans.
“We are conducting a careful review and while discussions are still ongoing, we anticipate our headcount reduction will take place in the first half of January. There are a variety of factors impacting the business landscape, hence we need to proceed with caution and manage our resources wisely,” Solomon said in a message, according to the report.
Bloomberg also states that the ultimate value of the layoffs might, however, be lower and will be determined by the choices made by top management who have been instructed to identify possible areas for cost-cutting.
During the pandemic, the company added a significant number of employees and the headcount at the end of the third quarter this year was 49,100. In spite of the intended layoffs, the headcount is expected to remain higher than the pre-pandemic number which reportedly stood at 38,300 at the end of 2019.