Layoffs: Goldman Sachs Plans New Job Cuts For Underperforming Bankers

US-based multinational investment bank and financial services company, Goldman Sachs is planning a fresh round of job cuts for bankers who are considered underperformers. The new round of layoffs is expected to take place as early as next month. It needs to be noted that Goldman Sachs has been reducing its headcount on a quarterly basis since last year.

People familiar with the matter told the Financial Times that the planned move is part of an annual exercise that typically results in between 1 per cent and 5 per cent of company-wide employees losing their jobs. Goldman is targeting a number at the lower end of that range at parts of its core investment banking and trading businesses and aims to begin the process as early as late October.

It also reported that 1% of Goldman's total headcount including roles in asset and wealth management and operations, would come equal to about 440 jobs. Further, managers at Goldman have prepared a list of employees who could be asked to leave the organisation, however, the final number of job cuts is yet to be decided.

Goldman has declined to comment to FT over the development.

In the June 2023 quarter, Goldman trimmed its total headcount by 1.76% to 44,600 employees compared to the total headcount of 45,400 employees in the March quarter. In June last year, Goldman had 47,000 employees under its ambit.

In the quarter, the company reported net revenues of $10.90 billion and net earnings of $1.22 billion. It said, results for the second quarter of 2023 were impacted by selected items related to the execution of strategic goals as outlined at Investor Day - in particular, the narrowing of consumer ambitions and the transition of the Asset & Wealth Management business to a less capital-intensive model.