Goldman to undergo biggest layoff, plans to shed 3200 jobs this week

Goldman Sachs Group, the U.S.-based investment banking company, is taking off on one of its major rounds of job cuts in history, as it is reportedly planning to lose nearly 3,200 people this week, with the company’s leadership digging deeper than competitors to slash jobs.

Apparently, a third of the estimated number of dismissals will probably come from its main trading and banking operations. This depicts how extensive the cuts will be.

The company will also soon release financial data for a new division that includes its credit card and installment loan operations, which reveal pre-tax losses of more than US$2 billion.

The addition of non-front-office positions to divisional personnel in recent years has increased the headcount reductions in its investment bank. The bank still intends to recruit more staff, while the standard analyst group is likely to be added later this year.

According to data, since the end of 2018, the staff has increased 34% under CEO David Solomon, reaching over 49,000 as of September 30. The company’s decision to primarily reserve its annual layoff of underperformers over the course of Covid had an impact on the number of dismissals this year.

The bank is being compelled to cut expenses as a result of slowdowns in several business sectors, an extensive consumer banking, and finance venture, as well as an ambiguous outlook for the markets and the economy.

A dip in asset values has eliminated another source of large gains for the bank from a year ago, while Wall Street has experienced a decline in merger activity and expenses from raising capital for enterprises. These broader market trends have been exacerbated by the bank’s shortcomings in its introduction into retail banking, where losses accrued at a much faster rate than expected ove日本藤素
r the entire year.

According to analyst projections, the bank now faces a 46% decline in earnings on roughly US$48 billion in revenue. This is supported by the company’s trading business, which will see another increase this year, helping the whole figure embark its second-best performance in the company history.

Source credit: https://www.straitstimes.com/business/goldman-to-cut-about-3200-jobs-this-week-after-cost-review-source