Goldman Sachs set to axe underperformers in late October
Goldman Sachs plans to cut jobs in its investment banking and trading sections for workers who are deemed underperformers, as part of its yearly performance review process. Per Financial Times, this could result in 1% to 5% of the workforce losing their jobs. This comes after the bank reduced 500 employees in September 2022 and substantially downsized its headcount by roughly 3,200 in the first quarter of this year.
The performance review plan is set for late October
The performance review plan is expected to be implemented in late October and is part of the bank's annual performance review exercise. Specifically, the bank aims to focus on reducing the number of underperforming employees at the lower end of the scale within its core investment banking and trading divisions. In July, CEO David Solomon said that the bank reintroduced this review process in the previous year after it was paused during the pandemic in 2020 and 2021.
Bank intensifies cost-cutting measures, eyes $1 billion
In June, Goldman Sachs held meetings with its managing directors, delivering a strong message that emphasized the necessity for more significant cost-cutting measures. The fact that cost-cutting was a prominent topic in meetings with the bank's top executives indicates that their efforts to cut costs by $1 billion (nearly Rs. 8,300 crore) are intensifying. Managers are now focusing on smaller line items and are considering additional job cuts as part of this cost-saving push.
There's no official statement from Goldman Sachs yet
Goldman Sachs has started the initial phase of identifying employees who may be impacted by the upcoming job cuts. However, the exact number of job reductions has not been officially confirmed yet. As of now, there has been no statement from a Goldman Sachs spokesperson regarding these planned cuts. The bank is likely still in the process of determining the final numbers and evaluating various factors before making an official announcement.
