BackGoldman Sachs plans fresh round of job cuts, to dismiss underperformers by next month
Goldman Sachs plans to dismiss underperformers in its annual evaluation of staff, with reductions expected to be at the lower end of the usual range.
PremiumGoldman Sachs Group Inc. is planning to perform another round of job cuts to dismiss its underperformers as soon as next month as part of its annual evaluation of staff, reported Financial Times.
The fresh round of job cuts will be made as part of the Wall Street firm's annual elvaluation of staff, according to FT report. This year's reduction will be performed at the lower end of the bank's usual range of 1% to 5% of its workforce, reported the newspaper citing sources.
In July, CEO David Solomon said that the company which halted job cut during the pandemic, had resumed its regular performance-based elimination of employees. The CEO also hinted that it would conduct it again in late 2023. The review will also pave way for executives to make compensation decisions at the end of financial year.
The initial process of elimination has also begun where Goldman managers have started drafting lists of those who may be cut. However, final numbers are still being set. Till now, there has been no official confirmation by Goldman spokesperson on the planned job cut.
In June this year, Goldman's managing directors were invited to meetings where they received an ominous message, “take even more painful steps to cut costs."
The company is trying to cut $1 billion in costs and is now pushing the target on its top level employees. Managers are targetting smaller and smaller line items and contemplate more job cuts. The American firm cut short its headcount by about 3,200 in the first quarter in its biggest round of layoffs since 2008 financial crises. There was also news of the company cutting about 250 jobs in May.
The company is trying to cut its workforce by letting go of managing directors across the globe to reduce the effect of deal slumps. The recent rounds of job cuts are the result of deep-cost savings drive at the bank. The company has seen at least three rounds of job cuts in less than a year.
Goldman Sachs and other banks had ramped up hiring in 2020 and 2021 amid a surge in M&A and initial public offerings are now grappling with falling fees as dealmaking sputters.
Deal values have fallen more than 40 per cent this year to $1.2 trillion, with Goldman Sachs the number two adviser globally, according to data compiled by Bloomberg. The last time the bank didn’t top the rankings at the halfway point of a year was in 2018.
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