As the economy continues to crater, one of America’s largest financial institutions has launched an initial round of layoffs that is projected to end in at least 3200 jobs lost. That will represent about 6 percent of the Goldman Sachs work force.
On Tuesday, The New York Times spoke with two anonymous sources who said the layoffs were already being set in motion. The “bulk of the affected employees” will be notified by Wednesday, the sources claimed.
With the stock market tumbling since Biden took office, it was only a matter of time before some of the nation’s largest institutions would have to adjust. Layoffs at one of the most esteemed financial institutions in the country most likely signals more industry layoffs.
Shares of the company have fallen about 10 percent over the past year, giving it a market value of $120 billion. It employed 49,100 people at the end of September.
While most major investment banks have been forced to retrench, many of Goldman’s closest competitors have not yet announced so at a similar scale. Morgan Stanley in December cut about 1,600 employees, or 2 percent of its work force.
Mr. Solomon said it would “continue to seek balance” between retaining people, the bank’s largest expense, and “an appropriate pay-for-performance mind set.”
Investment banking revenue has plummeted more than 50% in the last year alone.
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