Goldman Sachs Plans To Cut The Most Jobs Since The Pandemic Began

(CTN News) _ Since the start of the pandemic, Goldman Sachs Group Inc. has been cutting jobs rapidly.

According to people with knowledge of the matter, the Wall Street titan plans to eliminate several hundred jobs starting this month.

This is a resumption of Goldman Sachs annual culling cycle that was largely paused during the pandemic.

Despite record-breaking revenue, a chill has set in across the banking industry as a result of the move by the banking bellwether.

According to Bloomberg data, analysts expect the bank to post a more than 40% drop in earnings this year.

In July, the New York-based firm announced it would slow hiring and reinstate annual performance reviews, foreshadowing the job cuts it planned to make later in the year. This is an effort to rein in expenses in the face of a “challenging operating environment.”

The reviews are usually used to weed out underperformers. As Denis Coleman said at the time, Goldman Sachs could also slow down the pace of replacing staff lost due to attrition.

At the end of the second quarter, Goldman had 47,000 employees.

New York Times reported earlier Monday that Goldman was preparing to cut jobs. Goldman declined to comment.

The dramatic slowdown in Wall Street investment banking has hurt Goldman as well, as the volatility that’s spurred gains for trading also hurt capital markets and asset management.

Trading revenue surged 32% in the second quarter, but investment-banking revenue plunged 41% due to a sharp drop in underwriting.

Despite reductions in compensation and benefits, Goldman Sachs reported increases in growth-related costs in the second quarter.

Over 10% of Goldman Sachs shares have fallen this year, and about 15% from a year ago. In the past 12 months, the S&P 500 Financials index has dropped 7.5%.

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