Goldman Sachs to start layoffs mid-week; over 3,000 jobs to be axed

Goldman Sachs Group is likely to start cutting thousands of jobs across the firm from Wednesday, according to two people in the know. This comes as the company braces for a difficult economic environment. 

One of the sources, as reported by news agency Reuters, stated that the job cuts are expected to be just over 3,000, but the final number is yet to be determined. Goldman Sachs has, so far, declined to comment. 

Earlier, reports stated that Goldman Sachs would cut about 3,200 positions out of its 49,100 employees by the end of the third quarter. This is an aftermath of the hiring spree at Goldman during the coronavirus pandemic. 

The Goldman Sachs layoffs are likely to centre around its investment banking division but will also affect most of the major divisions. Its loss-making consumer business is also likely to see hundreds of jobs cut, after it scaled back plans for its direct-to-consumer unit Marcus, as per the Reuters sources. 

Moreover, investment banking fees nearly halved in 2022 from $132.3 billion a year ago to $77 billion, as per the report. Total value of mergers and acquisitions slumped 37 per cent to $3.66 trillion by December 2020. 

The Goldman Sachs layoffs come amid a job-cutting spree among companies across industries. Fast-food chain McDonald’s, video-hosting platform Vimeo, software company Salesforce, tech giants Meta, Twitter and Amazon, are just some of the companies in a long list to have announced layoffs. 

(With agency inputs)

Also read: Goldman Sacks: CEO says fresh round of layoffs in January

Also read: Goldman Sachs' Indian origin consumer banking head Swati Bhatia exits company