MONEY & BUSINESS: Goldman Sachs prepares for another round of layoffs as soon as next month
Goldman Sachs is planning another round of layoffs aimed at laggard employees — and it could come as soon as next month, sources told The Post.
The layoffs — which are expected to target 1% of under-performers at the Wall Street giant — would be the fourth round of cuts at the bank since last fall, The Post has confirmed.
Managers have already created lists of roughly 440 potential employees in investment banking, trading, asset and wealth management, and operations who will be affected, according to a source briefed on the situation.
The Wall Street giant has historically axed the bottom 1% to 5% of under-performers every year. This year the number will be at the bottom end of that range and is expected to go into effect by the end of October or early November, a source told The Post.
Last month, The Post reported that employees had been fretting about the possibility of more cuts — and that workers were planning to step up attendance after Labor Day amid worries they could lose their jobs.
While Goldman halted job cuts during COVID, the bank has made up for it by enacting multiple brutal rounds of layoffs this past year alone. In June, Goldman most recently axed 250 employees, including 125 managing directors.
In January, Goldman CEO David Solomon slashed 3,200 workers — the most since the 2008 financial crisis. Workers dubbed the chilling bloodbath “David’s Demolition Day.”
The cuts come as the bank saw net profit fall 35% in the first six months of this year.
In an interview with CNBC yesterday, Solomon acknowledged the slump and its impact on bonuses and morale, saying it’s the “first time in over a decade that we had a meaningful down move in compensation.”