7.2 C
New York

Goldman Sachs warns of cuts amid fears over job review process

Published:

Goldman Sachs CEO David Solomon signaled he’s sharpening the ax again on Tuesday — and the bank’s yearly performance review ritual is rattling employees even further, The Post has learned.

The hard-charging boss — who said Tuesday he may slim down the “footprint of the organization” — has stressed-out staff griping about Goldman’s “Strategic Resource Assessment.”

Now the buckets are “you might be great, you might be average, otherwise you stink,” one source told The Post.

“The firm changes the review structure so often it’s hard to maintain up,” the source added. “It’s like they’ll’t work out methods to get it right internally.”

Nevertheless, a Goldman spokesperson denied the corporate has modified its assessment process since 2020.

“There haven’t been changes since and it’s inaccurate to say otherwise,” the rep said.

The investment bank has historically targeted between 1% and 5% of lower performers in positions across the firm, based on an individual with direct knowledge of the situation.

Goldman Sachs CEO David Solomon conceded there may very well be one other round of layoffs on the firm.Reuters

David Solomon warned of David Solomon warned of “bumpy times” ahead in an interview Tuesday.Bloomberg via Getty Images

Employees won’t learn their fate for a number of more weeks. Those that get to maintain their jobs will then discover about their bonuses, that are expected to be significantly less this yr.

“Persons are very nervous… all just waiting in anticipation,” one Goldman insider told The Post.

In September, Goldman began its biggest round of cuts because the pandemic began, with an eye fixed at eliminating a whole lot from the worldwide workforce estimated at 47,000.

Solomon painted a grim picture of the economy and the steps Goldman will take to remain afloat on Tuesday.

“You’ve gotten to assume that we now have some bumpy times ahead,” he told Bloomberg News. “You’ve gotten to be a little bit more cautious along with your financial resources, along with your sizing and footprint of the organization.”

Goldman SachsFewer employees will likely be filing into 200 West Street in the brand new yr.Bloomberg via Getty Images

Goldman isn’t the one big bank trying to downsize. Morgan Stanley will chop about 2% of its workforce, a source conversant in the corporate’s plans said Tuesday. The job cuts, first reported by CNBC, affect about 1,600 positions.

Morgan Stanley CEO James Gorman disclosed in an interview last Thursday that the mega-bank was making “modest cuts all around the globe.”

“Some persons are going to be let go,” Gorman said in a sitdown on the Reuters Next Conference. “In most businesses, that’s what you do after a few years of growth.”

Other banks including Citigroup, Wells Fargo and Barclays are also making cuts.

sportinbits@gmail.com
sportinbits@gmail.comhttps://sportinbits.com
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

spot_img

Recent articles

spot_img