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Business News/ Companies / News/  Goldman Sachs plans fresh round of layoffs, likely to affect 250 jobs
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Goldman Sachs plans fresh round of layoffs, likely to affect 250 jobs

Goldman Sachs is considering a third round of layoffs, with less than 250 employees expected to be affected, as the bank recalculates costs amid the slow rebound in deal-making

The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City (Reuters)Premium
The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City (Reuters)

In what would be its third round of layoffs in a year, Goldman Sachs is mulling over another round of jobs and about 250 employees are likely to be affected. The buzz around the fresh layoffs came at a time when the revenues are soft all across Wall Street. The development comes as senior executives across the banking industry are re-calculating costs as a rebound in deal-making takes longer to materialize.

The news agency Reuters quoted sources and claimed that the jobs cut in Goldman Sachs can spread across seniority levels and may include partners and managing directors. At the end of March this year, Goldman Sachs had 45,400 employees.

In September 2022, Goldman Sachs eliminated several hundred jobs in the first round of layoffs, and after that in January 2023 came its biggest rounds of job cuts ever affecting around 3,200 employees.

In February, the investment banking firm outlined plans to seek about $1 billion in expense reductions. Goldman Sachs Chief Financial Officer Denis Coleman told investors that reducing the employee headcount to improve efficiency remains on the table. The cost-cutting plan included $600 million in payroll reduction.

Goldman Sachs has established a goal for its efficiency ratio in the medium term, aiming for 60% compared to the 68.7% it recorded at the end of March. Banks generally favor a lower efficiency ratio as it is seen as a signal of improved profitability.

The employees across the investment banking industry are affected by layoffs as the companies rush to reduce costs amid a hike in interest rates by the US Federal Bank and an uncertain economic outlook due to the Russia-Ukraine war.

Goldman Sachs's rival Morgan Stanley is also planning to eliminate 3,000 jobs in the second quarter. It will be Morgan Stanley's second round of layoffs in six months.

(With agency inputs)

 

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Published: 31 May 2023, 02:34 PM IST
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