A leading global investment banking, securities, and investment management firm, Goldman Sachs will be sacking hundreds of employees.
According to reports, the company is planning to cut at least 400 jobs as it looks at restructuring its struggling consumer business. According to reports, The job cuts at Goldman Sachs’ will be affecting the underperforming employees.
The reports also added the bank will stop providing “Personal loans” which are also said to be getting cut back which were launched in 2016 as one of Goldman Sachs’ first consumer products.
However, CEO Soloman has also recently indicated that he’s also reviewing other business lines to manage headcount and limit costs. The plans for the layoffs are still being finalized.
CEO Soloman said, “We continue to see headwinds on our expense lines, particularly in the near term. We’ve set in motion certain expense mitigation plans, but it will take some time to realize the benefits.”
“Ultimately, we will remain nimble and we will size the firm to reflect the opportunity set,” Solomon said at a conference last week.
Founded in 1869, Goldman Sachs is a leading global investment banking, securities, and investment management firm. Headquartered in New York globally employs about 49,000 staff. Goldman is contending with a dramatic slowdown in investment banking activity.
Goldman is also gearing up for a potential recession in 2023. Recently, Morgan Stanley laid off about 2% of its workforce. This affect about 1,600 positions workforce.
IT companies are already seeing margin pressure due to inflation and impending recession in markets like the US and Europe. Most recently, Meta has cut over 11,000 jobs, which is nearly 13% of its workforce.
In a letter to employees on Wednesday, CEO Mark Zuckerberg said that layoffs contend with faltering revenue and broader tech industry woes.
On the other hand, Elon Musk owned Twitter and laid off about 3,700 jobs, or half of the company’s workforce in a bid to cut costs.
