Jakarta –
Global banking and investment firm Goldman Sachs has done just that layoffs to 3,200 employees. The layoffs reportedly took place on Wednesday.
As quoted by CNBC on Tuesday (10/1/2023), the number of employees who were laid off was 6.5% of all employees. Goldman Sachs was registered with 49,100 employees last October.
The latest data, previously reported by Bloomberg, is the result of internal discussions between company bosses and staff over the past month.
Goldman CEO David Solomon kicked off Wall Street’s layoff season in September 2022. Bank employee rates have soared over the past two years in response to an explosion in transactions and business activity .
But the good times didn’t last long. IPO plans plunged 94% last year due to a suddenly hostile market, according to SIFMA data.
There are now fears that the economy will slow down in 2023. Solomon has started to scale back his ambitions in consumer banking, which has led to the layoff of several employees.
More investment banks are adopting a “wait and see” stance in the coming weeks. If earnings fall below forecasts in February and March, there will be more layoffs. This was conveyed by someone who has knowledge of the internal processes of major Wall Street firms.
“If things don’t improve in the first quarter, we will make further adjustments,” said compensation advisor Alan Johnson.
“You can’t have these expensive people sitting around doing nothing,” she continued.
Before Goldman made the layoffs, other Morgan Stanley, Citigroup, and Barclays firms had done so in recent months.
Restructuring Credit Suisse said it will cut 2,700 jobs in the last three months of 2022 and expects to eliminate a total of 9,000 positions by 2025.
Meanwhile, Goldman still plans to take on junior bankers and other jobs as needed.
(La la)
