Categories: Business

Goldman Sachs employees brace for layoffs

Goldman Sachs employees brace for layoffs

Goldman Sachs staff is bracing for layoff announcements on Wednesday as the US bank begins sweeping cuts across its 49,000-strong workforce.

The layoffs, expected to represent the biggest contraction in the bank’s headcount since the international financial crisis, are likely to hit most of Goldman’s main divisions, with its investment banking arm facing the deepest cuts, a source told Reuters this month. month.

Just over 3,000 employees will be laid off, the source said on Jan. 9.

The cuts began in Asia on Wednesday, where Goldman completed a downsizing of its wealth management unit and laid off 16 staff at offices in Hong Kong, Singapore and China, a person with knowledge of the matter said. At least eight employees were also laid off at Goldman’s Hong Kong analytics department, the source added, with layoffs ongoing at investment banking and other divisions.

There are still few signs of impending unrest at Goldman’s main hubs in New York or London.

The bank cuts will be accompanied by a broad review of travel and other spending, the Financial Times reported on Wednesday.

Goldman Sachs did not comment on the matter.

The US bank had 49,100 employees at the end of the third quarter, after adding a significant number of workers during the pandemic.

Goldman is also cutting bond payouts this year to reflect market conditions, with expected payouts down about 40%.

Global commissions charged by investment banks dropped by nearly half in 2022, adding up to $77 billion in bank earnings, according to data from Dealogic.

Source: CNN Brasil