Goldman Sachs Group is expected to initiate a massive job reduction from Wednesday, according to two people aware of the situation. The move comes as the Wall Street firm prepares for an impending economic downturn.
According to Reuters, the job cuts Goldman Sachs is expected to implement have been estimated at roughly 3,000; however, nothing has yet been finalized. The company remains silent on this news as of now.
The repercussions of Goldman Sachs’ expansive hiring spree during the COVID-19 pandemic are now being seen, as reports indicate that approximately 3,200 positions will be cut from its 49,100 employees by the end of Q3.
Hundreds of jobs at Goldman Sachs are projected to be axed, mainly in its investment banking division but also among the other important divisions. The consumer business segment, which has been losing money lately, is expected to face massive layoffs after it reduced plans for Marcus – its direct-to-consumer section. This information was shared by Reuters sources.
Last year, investment banking fees plummeted to $77 billion from the preceding year’s figure of $132.3 billion, as per a recent report. Additionally, total mergers and acquisitions suffered an immense 37% dip in value by December 2020 – dropping down to $3.66 trillion! Clearly indicating that businesses are facing unprecedented times due to the current economic climate across the world.
In the midst of a wide-ranging wave of job losses, Goldman Sachs is the latest to join this trend. From fast food chain McDonald’s to video streaming platform Vimeo and software company Salesforce, tech giants such as Meta, Twitter and Amazon also form part of an ever-growing list that have announced layoffs.
It remains to be seen if the job cuts Goldman Sachs will initiate will help them navigate this economic environment. In any case, it’s safe to say that the global economy is in a state of flux and companies must take every measure to protect their interests.
Stay tuned for further updates regarding Goldman Sachs’ job cuts as more information is disclosed in the coming days.