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Goldman Sachs to start cutting thousands of jobs

REUTERS/Lucas Jackson
The US investment bank expects the deepening in credit contraction and negative loan growth in August,are likely to slow domestic demand in Turkey

Goldman Sachs Group will start cutting thousands of jobs across the firm from Wednesday, two sources familiar with the move said, as it prepares for a tough economic environment.

The job cuts are expected to be just over 3,000, one of the sources said, but the final number is yet to be determined.

The sources could not be named as the information was not yet public disclosure. Goldman Sachs declined to comment.

Bloomberg News reported on Sunday that Goldman would eliminate about 3,200 positions. Goldman had 49,100 employees at the end of the third quarter, after adding significant numbers of staff during the coronavirus pandemic.

The layoffs are likely to affect most major divisions of the bank but should centre on Goldman Sachs’s investment banking division, one of the sources said. Institutional banks have suffered a major slowdown in corporate deals as a result of volatile global financial markets.

Hundreds of jobs are also likely to be reduced from Goldman Sachs’ loss-making consumer business after it scaled back plans for its direct-to-consumer unit Marcus, the sources said.

Investment banking fees nearly halved in 2022, with $77 billion earned globally by the banks, down from $132.3 billion one year earlier, Dealogic data showed.

The total value of mergers and acquisitions globally had slumped 37 percent to $3.66 trillion by December 20, according to Dealogic data, after hitting an all-time high of $5.9 trillion last year.

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 percent drop from 2021’s deal bonanza, according to Dealogic data.