Goldman Sachs CEO Tells Partners He Erred By Not Trimming Jobs Earlier: FT

Goldman Sachs Group Inc GS CEO David Solomon reportedly told a private gathering of the bank's top executives he had erred by not trimming jobs earlier in 2022.

Solomon said he was responsible for being slow in trimming headcount and cutting down on investments in new projects when it became apparent there would be a significant slowdown, reported Financial Times, citing people familiar with the remarks.

The banking giant’s chief was reportedly speaking to about 400 partners during a closed-door meeting in Miami.

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In January, Goldman cut 3,200 jobs, or roughly 6.5% of its workforce, as part of its biggest cost-cutting exercise in years. Solomon acknowledged this would have been less drastic if he had taken action earlier.

"As the environment was growing more complicated in Q2 of last year, every bone in my body believed we should be much more aggressive in slowing hiring and reducing headcount," Solomon said according to the report.

Ericka Leslie, Goldman's chief administrative officer and co-chair of the partnership committee, told FT that through the meeting, the bank provides transparency to its partners and they feel empowered to go out and tell that story to the people they work with. 

"I think we accomplished that," she said.

Solomon also said the number of leaks to the media about Goldman was damaging to the bank.

"David made the point that the leaks are damaging to the firm, and they are. I heard the same message from our partners all week," the spokesperson said.

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