Goldman Sachs may slash the bonuses of its roughly 3,000 investment bankers by 40% because the Wall Street giant grapples with an economic downturn that has affected your entire financial sector, in accordance with a broadcast report.
The large chop can be considerably higher than Goldman’s rivals, including JPMorgan Chase, Citigroup and Bank of America — all of that are said to be mulling cuts of 30%, the Financial Times reported Wednesday.
“I feel we’re going to be worse than the Street,” a senior Goldman banker told FT.
If implemented, the cuts can be the steepest because the 2008 financial crisis.
The Post has sought comment from Goldman Sachs.
The prospect of steep cuts in bonuses has fueled concern that investment bankers could bolt Goldman after the brand new 12 months.
CEO David Solomon last week said that Goldman could lay off more employees if economic headwinds persist.Bloomberg via Getty Images
Goldman also plans to chop the bonus pool for its 400 partners by as much as 50%, the news site Semafor reported last week.
The reduced bonuses come on the heels of expected layoffs. Last week, Goldman CEO David Solomon said the firm may eliminate at the least 400 positions from its loss-making retail banking operations, in accordance with a report.
The bank reported a drop in revenue in 2022.SOPA Images/LightRocket via Getty Images
Goldman cut around 500 jobs in September, an early signal to Wall Street that economic conditions were worsening.
It has been a difficult 12 months for Wall Street’s investment banking divisions. JPMorgan reported a 47% year-over-year decline.
Earlier this week, Reuters reported that Citigroup was shedding 50 staff in its Europe, Middle East and Africa region after revenues from investment banking dropped by greater than a fifth within the third quarter in comparison with the second quarter.
Citi’s year-over-year investment banking revenue tanked by 64% within the last quarter.
With Post wires