Goldman Sachs could cut 3,200 jobs

An informed source said on Sunday that the US bank Goldman Sachs plans to cut up to 3,200 jobs, less than what was initially stated, and the announcement may be made as early as this week, confirming press reports.

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Contacted by AFP, Goldman Sachs declined to comment.

However, a source familiar with the matter reported a maximum of 3,200 layoffs, which should be announced this week. However, the total number of them may be slightly less.

“We’re going to have to downsize a little bit,” David Solomon, CEO of Goldman Sachs, said at a conference organized by The Wall Street Journal in early December.

In mid-December, initial press reports said that 4,000 employees had been laid off, or just over 8% of the 49,100 at that bank.

A person familiar with the matter confirmed that the departures would be “probably a little higher” than what is usually practiced by the organization, which fires, each year, “1 to 5%” of its workforce.

And this source had reported a decision taken “in light of the current deteriorating economic situation,” and while the bank has recruited large numbers since 2019, which has led to an increase in the number of its employees by 28%.

Other Wall Street investment banks have also recently downsized. Morgan Stanley is currently laying off about 2% of its employees, or about 1,600 people, according to several US media outlets.

Goldman Sachs, weighed down by a slump in investment bankers’ activity, saw its net profit drop 44% in the third quarter, but nonetheless delivered better-than-expected results thanks to brokerage activity.