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Goldman Sachs isn’t the only company participating in the latest round of Wall Street layoffs. Banking giants such as Morgan Stanley and JPMorgan Chase are also reducing their workforce.
banking giant Goldman Sachs Group Inc (NYSE:GS) is reportedly planning to conduct a new round of layoffs. According to people aware of the matter, the move will affect around 250 employees in senior positions. The job cut plan is the result of a slowdown in Wall Street dealmaking and declining profits.
This is the third cut for Goldman Sachs in less than a year. The first round took place in September 2022 amid a restructuring process within the company. At the time, Goldman Sachs cut several hundred jobs, becoming one of the first Wall Street firms to reduce its workforce as a cost-saving measure amid a decrease in dealmaking and trading activity.
Next, in January this year, Goldman Sachs announced Mass layoffs of over 3,200 employees, which was 6.5% of its total workforce. This is the biggest cut since the 2008 financial crisis. As of March 2023, Goldman Sachs is expected to have 45,400 employees. Apparently, after a round of cutting, revenue fell below projections, so Goldman Sachs is laying off again.
Notably, the company may do more layoffs in September if necessary.
After the first round of layoffs last year, Goldman Sachs CEO David Solomon where did it go,
“There are several factors impacting the business outlook, including tightening of monetary conditions slowing down economic activity. We need to proceed with caution and manage our resources wisely.
Commenting on the latest move, Solomon said:
“Even in the midst of a difficult operating environment, we continue to work hard to strengthen the firm. We know progress is never a straight line, but we are excited about the opportunities ahead.”
Challenging financial conditions are dominating the global economy, affecting Wall Street’s merger and acquisition dealmaking. In 2022, Wall Street projects a 56% drop in pretax profit due to fewer mergers, debt issues and public offerings. This has led to a massive drop in Wall Street bonuses. Compared to 2021, as bankers generated huge personal rewards amid a deal-making frenzy, Wall Street’s average bonus for securities workers in 2022 fell to $176,700, down 26% from the previous year’s $240,400. Annual estimate according to State Comptroller Thomas P. DiNapoli.
wall street layoffs
Goldman Sachs isn’t the only company participating in the latest round of Wall Street layoffs. another banking giant Morgan Stanley (NYSE:MS) is reportedly planning to eliminate about 3,000 positions, or 5% of its workforce, by the end of June. The downsizing will affect mostly banking and trading staff.
It was revealed last week JPMorgan Chase (NYSE:JPM) also plans to cut 500 jobs in the technology and operations units, as well as in the consumer banking, commercial banking, asset and wealth management divisions. The company made no official announcement about the move, but people familiar with the matter said that along with the layoffs, JPMorgan has more than 13,000 job vacancies available.
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