The economy and stock market continue to fall. One of the largest financial institutions has announced the first series of layoffs expected to result in at least 3,200 positions being lost. It works out to around 6 percent of Goldman Sachs’s workforce.
On Tuesday, the New York Times spoke with two anonymous sources who claimed the layoffs had already been initiated. They said the “bulk of the affected employees” will be informed by Wednesday, sources said.
As the market has plunged since Biden was elected, it was only a matter of time before some of the country's biggest institutions were forced to shift gears. The case of one of the most prestigious financial institutions in the United States likely signals further industry layoffs.
“Shares of the company have fallen about 10 percent over the past year, giving it a market value of $120 billion. It employed 49,100 people at the end of September.
“While most major investment banks have been forced to retrench, many of Goldman’s closest competitors have not yet announced so at a similar scale. Morgan Stanley in December cut about 1,600 employees, or 2 percent of its workforce.”
Goldman’s chief executive officer, David Solomon, warned investors earlier this year that rising inflation and technological advancements will likely trigger some significant “headwinds.”
Mr. Solomon said it would “continue to seek balance” between keeping employees, the biggest expense for the bank, and “an appropriate pay-for-performance mindset.”
The revenue from investment banking has dropped by more than 50 percent in the past year.