Layoff wave: Goldman Sachs may lay off 4,000 employees to slash workforce by 8%

The company's decision to cut jobs comes after chief executive David Solomon announced plans to curtail "Main Street" banking ambitions, reports The Financial Times.

IANSUpdated: Saturday, December 17, 2022, 04:53 PM IST
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Layoff wave: Goldman Sachs may lay off hundreds of employees | Canva

Global investment bank Goldman Sachs is reportedly planning to lay off 8 per cent of its staff , which means 4,000 employees may be affected at its consumer business.

The company's decision to cut jobs comes after chief executive David Solomon announced plans to curtail "Main Street" banking ambitions, reports The Financial Times.

According to people familiar with the matter, the banking major is also planning to stop offering personal loans through its Marcus-branded retail banking platform.

Goldman to reduce retail banking

Solomon announced in October that Goldman will significantly reduce its retail banking unit after years of losses and rising costs, according to the report.

However, its Marcus division will still accept retail deposits, which offer a relatively cheap source of funding for the bank.

In additional to annual cull of underperforming employees

The report said that these layoffs will be in addition to the annual cull of underperforming employees that the banking firm typically conducts each year.

Moreover, Goldman is also gearing up for a potential recession in 2023.

Solomon said Goldman had "set in motion certain expense mitigation plans, but it will take some time to realise the benefits".

Bloomberg, which earlier reported the potential cuts, said it could affect as many as 400 positions, the report added.

However, Goldman, which employs over 49,000 people worldwide, declined to comment.

The company has about 81,567 employees.

Morgan Stanley layoffs

Earlier this month, Global investment advisory firm Morgan Stanley cut about 2 per cent of its global workforce, or about 1,600 employees, amid the global economic meltdown.

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