Goldman Sachs is set to lay off around 1,300 to 1,800 employees as part of its yearly review, according to The Wall Street Journal. This represents about 3% to 4% of the company’s global workforce, which was approximately 45,300 people last year. The job cuts will affect various divisions within the bank.
These layoffs have already started and will continue through the fall. They are part of Goldman’s regular “strategic resource assessment” (SRA), which is an annual process.
A Goldman spokesperson, Tony Fratto, mentioned that these reviews are routine and expected, and the bank’s overall employee count is expected to be higher by the end of 2024 compared to 2023.
Goldman typically reduces its workforce by 2% to 7% each year based on performance and other factors, though this percentage can change depending on the market and the bank’s financial outlook. One key factor being considered this year is in-office attendance, as the bank has become stricter about employees working from the office post-pandemic.
Other big banks like JPMorgan and Citigroup also have similar processes to let go of underperforming employees each year.
Goldman had paused its SRA program during the pandemic when deal-making was at an all-time high but resumed it in 2022. The bank reported a 21% increase in investment-banking revenue in the second quarter of 2024 compared to the previous year, along with a 27% rise in its asset and wealth management business. CEO David Solomon stated that the bank is in the early stages of a recovery in capital markets and mergers & acquisitions.
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