Goldman Sachs plans to cut nearly 1,300 jobs from its global workforce as part of an annual review, according to a report by He The Wall Street Journal.
The job cuts will be between 3% and 4% of its workforce, which would be between 1,300 and 1,800 people according to the Goldman The bank had employed around 45,300 people as of the end of last year, according to the report. Job cuts will occur across the bank’s various divisions.
Job cuts The investments, which have already begun and will continue through the fall, are part of the investment bank’s annual review process, known as the “strategic resourcing assessment,” or SRA.
“Our annual talent assessments are normal, standard and customary, but otherwise unremarkable,” the report said, citing Goldman spokesman Tony Fratto. Goldman It is expected to be higher at the end of 2024 compared to 2023, he noted.
The report notes that Goldman typically aims to cut between 2% and 7% of total staff annually based on performance factors. This range has changed over time due to market conditions and the bank’s financial outlook.
The annual selection process will take into account many factors, including attendance at offices. The bank and its peers had relaxed this rule during the pandemic, but now banks are being stricter with employees who do not attend offices, according to the report.
Other banks, such as JPMorgan and Citigroup, have similar measures to weed out underperformers each year.
Goldman had paused its SRA program during the pandemic, at a time when transactions had reached record levels. It continued the program in 2022.
According to the report, Goldman reported a 21% increase in investment banking revenue in the second quarter of 2024 compared to the previous year. The bank also reported a 27% increase in revenue from its asset and wealth management business.
“From what we’re seeing, we’re in the early stages of a recovery in capital markets and M&A,” Goldman Chief Executive David Solomon was quoted as saying in a statement on a conference call with analysts.
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