Goldman Sachs Plans To Axe Nearly 250 Jobs In Coming Weeks

Goldman Sachs Group Inc is planning to axe fewer than 250 jobs in the next few weeks as a slow market for deals weighs on investment banking, according to sources.

The departures could be spread across seniority levels and include partners and managing directors, the source said. The layoffs were reported earlier by the Wall Street Journal. Goldman had 45,400 employees at the end of March, according to a Reuters report.

The move comes after Goldman reduced its headcount by about 3,200 in the first quarter in its biggest round of layoffs since the 2008 financial crisis. It also cut about 500 jobs last year, stated Reuters reporrt.

A second source said the bank has kept budgets tight this year.

Investment banks have been hit hard by a slump in dealmaking as the Federal Reserve raised interest rates aggressively to tame inflation and the war in Ukraine clouded the economic outlook, Reuters reported.

Rival Morgan Stanley planned to eliminate about 3,000 jobs in the second quarter, in its second round of layoffs in six months, a source told Reuters earlier in May. Lazard Ltd (LAZ.N) will also reduce its workforce by 10%.

Goldman Sachs Chief Financial Officer Denis Coleman told investors in late February that the bank planned to improve its efficiency ratio by reducing headcount, not replacing staff who depart and trimming other expenses, added the Reuters report.

The plan included $600 million in payroll reduction.