Goldman Sachs Group will start laying off thousands of employees from their jobs this week from Wednesday, two sources familiar with the source said.
According to the reports, the jobs cut-off will not exceed 3,200 but the final number is yet to come.
According to a Bloomberg report, the layoffs are expected to impact thousands of jobs at the investment banking division. The reports also added that Goldman had 49,100 employees at the end of Q3, after adding a significant number of staff during the COVID-19 pandemic. However since the economy is now progressing towards an economic slowdown, the cutoffs are expected to affect major divisions of banks.
To add a reason to the cutoffs, the reports added that the Institutional banks have suffered a major slowdown in corporate deals as a result of volatile global financial markets. Hundreds of jobs from Goldman’s loss-making consumer business are likely to be cut off after it scaled back its plan of direct-to-consumer unit Marcus, sources added.
Goldman Sachs’ job layoffs also come at a time when the firm’s major competitors have also announced job cutoffs as an effort to scale back and minimize losses.
Moreover, Investment banking fees nearly halved in 2022, with $77 billion earned globally by the banks, down from $132.3 billion a year earlier, Dealogic data showed.
The total value of mergers and acquisitions globally had come down to 37% to $3.66 trillion by December 20, after hitting an all-time high of $5.9 trillion last year, according to Dealogic data.
Banks had executed $517 billion worth of equity capital markets (ECM) transactions by late December 2022, the lowest level since the early 2000s and a 66% drop from 2021’s deal bonanza, according to Dealogic data.
