As part of its yearly performance-review, Goldman Sachs is going to let go at least 1,300 employees. The process of layoffs has already begun, and the number of employees impacted may even go up to 1,800 by the end of it all.
While these job cuts may trim the present workforce by three to four per cent, the exercise will not affect the bank’s hiring plans, which will see the team size increasing by the end of the year.
According to the Wall Street Journal, the layoffs will affect several divisions of the bank.
Such job cuts are not unheard of at Goldman Sachs. In fact, it is quite usual for the bank to let go at least two per cent of its workforce, sometimes even up to seven per cent, if they are found to be underperformers as per the annual-performance review.
Last year, the headcount was reduced by six per cent at the end of the performance-review process, followed by another round of cuts a few months later. In fact, in the first quarter, the bank had reduced its workforce by approximately 3,200 employees, marking its most extensive round of layoffs since the 2008 financial crisis. Additionally, there were reports of the company eliminating roughly 250 positions in May.
The company had discontinued its performance-based job cuts during the pandemic. However, when conditions were back to normal, it resumed its usual practice.
