Goldman Sachs is planning more layoffs in 2023. According to a source acknowledged with the situation, the company plans to cut around 8% of its employees in January.
The company is heard to strive for a tougher environment during the next year. This is why the bank decided to fire 8% of its employees. The cut will impact all divisions just ahead of the upcoming stakeholders’ conference where the key performance targets will be announced. Additionally, some experts say the investment bank is trying to preserve bonuses paid in dollars to remaining employees.
Along with other Wall Street players, Golden Sachs will be forced to adjust to the environment with lower revenues in 2023. A boom that lasted for the last 2 years has eventually come to an end.
The investment bank was the first to launch a chain of layoffs earlier in September followed by Citigroup, Barclays, Morgan Stanley, and some more. However, the new wave of cuts initiated by Goldman Sachs is going to be the deepest one yet taken on Wall Street. Other firms are very likely to follow this example.
Experts believe that the end of the deals boom will force companies to resize their structures as well as the number of employees to fit new performance goals. Most companies are over-hired. Now, they will have to over-fire to keep a positive balance.
As stated earlier, the bank plans massive layoffs in January. About 4,000 employees can be impacted. Generally, they will include underperformers. Those working in consumer businesses are also at risk of being fired.
Earlier, Goldman Sachs hired more workers having overall 49,100 employees by the end of September. By the way, it is 14% higher compared to the previous year. The banks’ CEO David Solomon said they continued to see headwinds on the expense lines.
The board had nothing to do but apply specific expense migration plans. It will take the bank some time before it realizes the benefit.
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