Goldman Sachs to lay off as many as 3,200 employees this week
Goldman's new analyst class will still start as planned
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Goldman Sachs is planning to lay off as many as 3,200 employees this week, a source familiar with the matter said, as Wall Street contends with an uncertain U.S. economy and volatile markets.
This marks the latest sign that cuts are accelerating across Wall Street as dealmaking dries up.
Still, the firm will continue strategic hiring, the source said. In addition, Goldman's new analyst class, which totals about 3,000 people, will start later this year.
Goldman's headcount totaled 49,100, according to its latest earnings report.
GOLDMAN SACHS PLANNING TO LAY OFF THOUSANDS OF EMPLOYEES
Investment banking revenues have plunged this year amid a slowdown in mergers and share offerings, an about-face from a blockbuster 2021 when bankers received big pay bumps and firms, like Goldman, ramped up hiring.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GS | THE GOLDMAN SACHS GROUP INC. | 601.71 | -3.86 | -0.64% |
Even "against the backdrop of uncertainty and volatility in the markets, we continue to prudently manage our resources and remain focused on risk management as we serve our clients," CEO David Solomon said in the company's third-quarter earnings report.
Goldman Sachs declined to comment on the matter.
David Solomon, chief executive officer of Goldman Sachs Group Inc., during a Bloomberg Television at the Goldman Sachs Financial Services Conference in New York, US, on Tuesday, Dec. 6, 2022. (Photographer: Michael Nagle/Bloomberg via Getty Images / Getty Images)
During a conference in December, Solomon indicated that the company had been looking to cut back on expenses as the company faces headwinds.
"We continue to see headwinds on our expense lines, particularly in the near term," Solomon said at the conference. "We’ve set in motion certain expense mitigation plans, but it will take some time to realize the benefits."
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That same month reports started surfacing that the firm was planning to cut up to 8% of its workforce and that Solomon was considering slashing the bonus pool by at least 40%.
People walk past the Goldman Sachs building in Lower Manhattan on Jan. 18, 2022, in New York City. (Photo by Spencer Platt/Getty Images / Getty Images)
The firm already laid off 500 employees in September as the economy continued to hammer the financial sector.
FOX Business' Phillip Nieto contributed to this report.