24.6 C
New York

Goldman Sachs begins layoffs, targeting mid-level bankers


Goldman Sachs has begun shedding employees across the US — and the Wall Street giant is targeted on culling mid-level investment bankers amid a downturn in dealmaking because the economy slows, in line with a report.

Last week, Goldman laid off nearly a dozen bankers in the celebrated technology, media and telecommunications division alone, in line with an Insider report. Consumer retail, health care and industrials divisions have also been hit by layoffs, the report adds.

While bankers at every level have been affected, senior associates and vice presidents have borne the brunt of the culling since they’re advanced enough to cost the corporate money but typically aren’t rainmakers like partners on the firm, the report notes.

Before the pandemic, Goldman annually culled 1% to five% of under-performers from its workforce every yr but halted the firings as business boomed throughout the pandemic. 

This yr’s layoffs are on the lower end of that range, a source with knowledge told The Post, however it’s still a stark change from only a yr ago, when the bank was climbing salaries and bonuses in a bid to fulfill a dire talent shortage across the industry.

It’s not only the US bankers getting pink slips. Around a dozen bankers within the London office of Goldman Sachs have been axed, in line with a Financial News report, and greater than two dozen bankers in China have been fired, in line with Reuters.

David Solomon has mandated employees get back to the office because the bank begins culling its workforce.Bloomberg via Getty Images

“Every yr globally we conduct a strategic assessment of our resources and calibrate headcount to the present operating environment,” a Goldman spokesperson told The Post. “We proceed to stay flexible while executing against our strategic growth priorities.” 

This yr’s resumption of layoffs come amid a dramatic slump in revenue. The Wall Street giant helmed by David Solomon reported second-quarter earnings of $2.93 billion, precipitously lower than the second quarter of 2021, when the bank hauled in $5.49 billion.

Investment banking was the driving force behind the slump — bringing in 41% lower than it did a yr ago. Trading revenue of $6.47 billion — up 32% yr over yr — barely offset losses.

In July, The Post reported that talk of hiring freezes and firings was circulating at financial firms as soaring rates of interest and recession fears tanked appetites for mergers, IPOs and other big corporate deals, in line with sources.

Get the latest Sports Updates (Soccer, NBA, NFL, Hockey, Racing, etc.) and Breaking News From the United States, United Kingdom, and all around the world.

Related articles


Recent articles