New York: Goldman Sachs could cut up to 8 percent of its staff, or around 4,000 jobs, it reported Friday, as the financial giant eyes slowing global growth in 2023.
Job losses are expected as early as 2023, according to reports from JEE News, which said the final figure could ultimately be less than 8 percent.
Goldman Sachs typically cuts headcount by about one to 5 percent each year, targeting underperforming staff.
A person familiar with the matter told JEE News that this year’s cuts would be deeper than usual in light of the uncertain economic outlook and Goldman’s staff growth in recent years.
Goldman had 49,100 employees at the end of October, up nearly 30 percent from the end of 2019 after divestitures and acquisitions.
The move comes as Goldman Sachs and other investment banks have seen a big drop in fees associated with initial public offerings and expressed a cloudy outlook for mergers and acquisitions advice in 2023 due to economic uncertainty. .
At a financial conference last week, Goldman Chief Executive David Solomon said capital market activity had also been weaker than expected, and clients were “de-risking” after a volatile year.
“At the same time, we continue to see headlines on our expense lines, particularly in the near term,” Solomon said. “Ultimately, we will remain nimble and we will size the firm to reflect the opportunity set that we see in front of us.”
