Goldman Sachs to lay off numerous employees, according to various sources
In a series of moves aimed at streamlining its operations, Goldman Sachs has been reducing its workforce. Last year, the investment bank announced plans to cut a few hundred employees as part of its annual review process, which was restored in 2022 after being paused during the COVID-19 pandemic.
The planned cuts, estimated to be around 3% to 5% of the workforce, would have amounted to more than 1,395 job cuts from its 46,000-strong workforce. However, these cuts were later forgone due to improved business outlook.
Notably, earlier in January 2023, Goldman Sachs had already eliminated 3,200 employees, about 8% of its workforce, as part of a broader restructuring effort dubbed “The Great Culling”. This significant cut targeted senior personnel across investment banking groups.
The impacted group included those in investment banking and trading. Last September, Truist also announced "sizable reductions" to its workforce as part of a $750 million cost savings plan.
On a positive note, Goldman Sachs reported 21% higher investment banking fees in the second quarter of this year compared to the same period last year. Additionally, its revenues in asset and wealth management jumped 27% year over year, as reported in July.
In other news, Goldman Sachs won a dispute with the Federal Reserve, reducing its stress capital buffer requirement to 6.2% for the fiscal year starting October 1. This reduction could free up roughly $100 million for the investment bank.
In a separate development, Citi launched a significant reorganization in September 2022 that may reduce the bank's headcount by 20,000 by 2026.
References:
- Bloomberg
- Reuters
- CNBC
- Financial Times
- Despite the recent job cuts in the industry, Goldman Sachs has seen a spike in its investment banking fees, with a 21% increase in the second quarter of this year compared to the same period last year.
- Citi, another prominent player in banking and finance, announced a significant reorganization in September 2022, aiming to reduce its workforce by 20,000 by 2026, a move that reflects broader trends in the business and banking-and-insurance sectors.
