Layoffs at Goldman Sachs: return of the financial crisis? Goldman Sachs is expected to start cutting hundreds of jobs this month. here’s why

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Wall Street titan Goldman Sachs plans to cut hundreds of jobs, according to a source familiar with the plans. It will be the first time in the past two years that Goldman Sachs Group Inc. will cut hundreds of jobs. The Wall Street titan cuts its workforce by 1% to 5% each year, but the group had halted this annual practice during the coronavirus pandemic.

The source told Reuters news agency that Goldman Sachs’ 2022 downsizing could be at the lower end of its usual range. The source also said job cuts at the company could begin as early as next week. Notably, Goldman Sachs’ workforce reached 47,000 at the end of June, a 15% increase over last year’s figure. Therefore, a 1% reduction in the workforce would mean the layoff of approximately 500 employees.

Buy or not? Largecaps Goldman Sachs is overweight and underweight on

Buy or not? Largecaps Goldman Sachs is overweight and underweight on

The New York Times had previously reported that the Wall Street giant was considering laying off some of its staff. However, Goldman Sachs declined to comment on the report. In July, Goldman Sachs said it may cut hiring and cut spending due to the deteriorating economic outlook. Separately, Goldman Sachs Chief Financial Officer Denis Coleman had said the bank would also reinstate its employee performance appraisal process by the end of 2022. The process was halted during the pandemic. The investment bank had reported a 48% drop in quarterly profit, beating forecasts due to gains in commodities trading and fixed-income securities.

Meanwhile, the Carson Group’s chief market strategist, Ryan Detrick, said the pressure on banks is likely to continue and financial institutions could cut costs wherever and whenever possible. Lower hiring and job cuts by banks are entirely possible, Ryan added.

FAQs:

1). What is Goldman Sachs?

Goldman Sachs is a leading global investment bank.

2). What loss did Goldman Sachs suffer in its quarterly profit in July?

Goldman Sachs announced a 48% drop in quarterly profit in July.

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