Home Economy Goldman Sachs To Cut Layoffs Employees

Goldman Sachs To Cut Layoffs Employees

Goldman Sachs To Cut Layoffs Employees
Photo: Reuters

Goldman Sachs plans to lay off workers in September 2022. The U.S. investment bank will resume layoffs after halting annual practices for two years due to the coronavirus pandemic. Reuters reported this news citing a source connected with the plan. The Wall Street giant typically cuts about 1-5 percent of its workforce yearly. However, the bank is returning to the old practice through this year’s layoffs. The source told Reuters the layoffs could begin as early as possible. The article is about Goldman Sachs To Cut Layoffs Employees.

At the end of June, Goldmass Sachs’ workforce increased to 47,000. This number is 15 percent higher than a year ago. That means a 1 percent reduction in the organization means nearly 500 workers will face layoffs. The New York Times also reported on the impending layoffs, citing two people involved in the plan. However, Goldman Sachs declined to comment on the matter.

Earlier in July, the investment bank announced a slowdown in hiring and cost cutting, citing growing economic uncertainty. As a result, the bank’s profit fell 48 percent in the second quarter. However, Goldman’s income in fixed income and commodity businesses increased.

In July, Goldman Sachs Chief Financial Officer Dennis Coleman said the bank would resume annual performance reviews for employees later this year. The process was put on hold for two years due to the epidemic. In addition, the Federal Reserve has been aggressively raising interest rates to reduce inflationary pressures, the highest in four decades. This has created a risk of recession in the country’s economy. Keeping such risks in mind, banks are taking initiatives to reduce costs.

Banks are likely to be under pressure to cut costs, said Ryan Detrick, chief market strategist at financial sector consultancy Carson Group. As a result, they will lay off old staff and slow down on new hires. In the past few months, JPMorgan, Wells Fargo, and Citigroup have reduced workforces in mortgage lending departments. Banks are taking cost-cutting measures to avoid the risk of losses in this sector due to the slowdown in the country’s housing sector.

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