Goldman Sachs is planning to lay off up to 4,000 staff as storm clouds gather over the global economy.
The Wall Street bank is drawing up plans to cut up to 8 per cent of its workforce, according to news website Semafor.
It comes after the American titan hired swathes of employees across its investment bank following the pandemic, as deal-making roared back.
What’s in a name: The Wall Street bank is drawing up plans to cut up to 8 per cent of its workforce, according to news website Semafor
Now, with that short-lived boom tailing off, Goldman Sachs is having to consider heavy redundancies in order to meet its profitability targets.
According to figures from financial market data provider Refinitiv, fees from investment banking have slumped 35 per cent this year compared to last.
Goldman has also been spending billions on its push into mainstream retail banking through Marcus, which has not yet turned a profit.
Managers across the bank, which employs around 4,000 people in the UK, have been asked to single out low performers, sources said.
Since David Solomon – who is also a part-time DJ – took over in 2018, Goldman’s global workforce has ballooned by a third to more than 49,000.
Those who remain might be in for a leaner few months, as Goldman is also planning to slash the bonus pool for its 3,000 investment bankers by 40 per cent or more.
This would be the biggest cut since the 2008 financial crisis.
Rivals JPMorgan, Citigroup and Bank of America are all reportedly cutting their investment banking bonus pools by 30 per cent.
While other lenders are also suffering from the same squeeze as Goldman, few are planning such drastic job reductions.
Banking rival Barclays has cut about 200 jobs across its banking and trading desks in recent months, and Citigroup has also been making layoffs.
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