- Goldman Sachs Group Inc GS plans to lay off around 4,000 employees as it struggles to navigate a difficult economic environment, though no final list has been drawn up.
- As per Semafor, managers have been asked to identify low performers.
- After adding significant staff during the pandemic, the bank had around 49,000 employees at the end of the third quarter. Headcount will remain above pre-pandemic levels, which stood at 38,300 at the end of 2019.
- In a typical year, 2%-5% of Goldman lays off or receives no bonus — "zeroed out" in industry parlance.
- Related: Goldman Plans Combining Investment Banking and Trading Units In Major Organizational Overhaul.
- The dealmaking and fundraising activities have slowed down, and the Wall Street bank finds it challenging to meet profitability targets.
- In September, Goldman Sachs announced laying off about 500 bankers. The CFO also said that it would slow its hiring pace and be slower in replacing departing staff due to economic uncertainty.
- Almost a week back, another Wall Street giant, Morgan Stanley MS, trimmed its workforce by about 2%, affecting around 1,600 positions.
- Switzerland's second-largest bank, Credit Suisse Group AG CS, said it was shedding 2,700 full-time staff, accounting for about a third of its planned cuts and a fifth of its 52,000 global employees.
- It expects the total staff base to shrink to 43,000 by the end of 2025 through further job cuts and natural attrition.
- Price Action: GS shares are down 0.98% at $346.39 on the last check Friday.
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