Goldman Sachs Job Cuts Biggest Layoffs Till Date, Read Report

Goldman Sachs Group Inc. is reportedly laying off its employees since the start of the pandemic. The latest round of Goldman Sachs layoffs could begin as early as next week. The Wall Street titan plans to cut several hundred jobs starting this month while the total number is less than some previous rounds, the reductions are a resumption of Goldman’s annual culling cycle that it had largely stopped during the pandemic. 

The decision by the banking giant is the clearest indication of a winter that has set in across the US industry amid a slump in revenue after record breaking quarters. According to analysts cited by Bloomberg, Goldman Sachs is likely to post a more than 40 percent drop in earnings this year. The company said in July that it planned to slow hiring and reinstate annual performance reviews and the reviews are used to remove the worst performing staff.  

Goldman could slow hiring and cut expenses as the economic outlook worsens Chief Financial Officer Denis Coleman said at the time. Goldman had 47,000 employees at the end of the second quarter, compared with 39,100 two years earlier, aided by recent acquisitions.

Goldman shares are down over 10% this year and about 15% from a year ago. That compares with a 7.5% drop in the S&P 500 Financials index for the past 12 months.