Goldman Sachs plans to slash hundreds of positions this month, making it the first major Wall Street business to trim costs amid a drop in deal volume.
According to a person with firsthand knowledge of the matter, the bank is reviving a tradition of annual employee culls, which have typically targeted between 1% and 5% of weaker performers in positions across the firm.
At the low end of that range, which is the sc
ale of the projected cull, that translates to several hundred job cutbacks at the New York-based investment bank, which had 47,000 employees at the end of the year.
Goldman Sachs plans to let off several hundred employees this month, making it the first major Wall Street business to slash costs amid a drop in deal volume.
According to a person with firsthand knowledge of the matter, the bank is reviving a tradition of annual employee culls, which have typically targeted between 1% and 5% of weaker performers in positions across the firm.
At the low end of that range, which is the extent of the projected cull, that translates into several hundred job cutbacks at the New York-based corporation, which had 47,000 employees at the midpoint of the year.
Goldman is unlikely to be the only bank to lay off employees. Prior to the pandemic, Wall Street firms generally laid off their low-performing employees in the months following Labor Day and before incentives were paid out. The practise was put on hold in recent years due to a hiring boom.
Goldman declined to comment on its plans on the record. The New York Times first reported on the timing of the cuts.
CNBC was the first to disclose in July that the bank was considering returning to its traditional practise of making year-end job cutbacks.
CNBC reported in June that steep decreases in investment banking activities, particularly IPOs and junk debt issuance, established the conditions for the first big layoffs on Wall Street since the epidemic began in 2020.
