Goldman Sachs Set to Trim Workforce After Earlier 3.2K Layoffs

Goldman Sachs Group, Inc GS is gearing up for another round of job cuts, targeting employees considered low performers, with the action expected to occur by October. The move is a part of the firm's ongoing push to reduce costs by $1 billion.

This annual move typically reduces 1% - 5% of the company's workforce, focusing on core investment banking and trading divisions. 

Goldman aims to stay on the lower end of that range, focusing on parts of its core investment banking and trading divisions. 

Also Read: Goldman Sachs Plans To Lay Off 125 Managing Directors Worldwide: Report

The process will likely commence in late October, the Financial Times cites familiar sources.

The 1% reduction in headcount would equate to approximately 440 jobs across Goldman Sachs, encompassing asset and wealth management and operational roles.

Notably, Goldman Sachs had already eliminated thousands of jobs earlier this year. 

In January, the bank cut approximately 3,200 jobs, or 6.5% of its workforce, to reduce costs following a dramatic slowdown in investment banking activity and losses in its consumer banking business. 

Several senior executives have also quit the bank after these changes.

The so-called "strategic resource allocation" was temporarily halted during the pandemic but resumed last year, with job losses remaining at the lower end of historical levels.

Managers within Goldman have already compiled lists of potentially affected employees. 

Still, final figures are pending and could be influenced by resignations before formal notifications kick in, which may reduce the number of layoffs.

Also this week, Roku, Inc ROKU shared plans to downsize 10% of its workforce to cut down on operating expenses.

Price Action: GS shares traded lower by 0.20% to $321.96 on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.