Investment bank Goldman Sachs (GS) is reportedly planning to layoff as much as 5% of its
global workforce by the end of September.
The Wall Street bank has typically cut 1% to 5% of its staff each year in September but
suspended the annual practice for two years during the pandemic.
However, the job cuts are likely to resume this year and kickoff rounds of layoffs at other Wall
Street financial institutions in coming months.
The job cuts at Goldman Sachs are likely to be in the lower end of the 1% to 5% range,
according to multiple media reports.
Goldman's headcount grew to 47,000 people at the end of June, up 15% from a year earlier. A
1% cut to staffing would result in a reduction of about 500 workers.
During the summer, Goldman Sachs warned that it might slow hiring and cut expenses as the
economic outlook worsened. It reported a 48% slump in quarterly profits during its most recent
earnings results.
With risks of a U.S. recession growing and the U.S. Federal Reserve raising interest rates to
slow inflation, financing deals have dried up for Goldman Sachs and other banks.
Goldman Sachs’ stock is down 13% this year and trading at $342.58 U.S. per share.
