Derived from the volatility registered in the financial markets, Goldman Sachs plans to lay off 3,200 employees this week in the United States
According to a source consulted by Fox Business Network, the Goldman Sachs Group plans to lay off up to 3,200 employees this week.
Apparently, the measure is due to the fact that investment banking income has been plummeting for some months as a result of the slowdown in the US economy.
Goldman’s goal is to revitalize its analyst group, as the staff cut it will experience does not even correspond to 6.5% of the 49,100 employees reported in its latest earnings report.
To this must be added that the firm will continue with the strategic hiring of new employees that offer added value with respect to the personnel it will dispose of.
During a conference organized in December, David Solomo, in his capacity as executive director, had already given clues about the steps that Goldman Sachs would take to try to adjust to the volatility experienced in the financial sector.
“We continue to see headwinds on our expense lines, particularly in the near term. We have put some cost mitigation plans in place, but it will take some time to see the benefits,” he said.
Almost immediately, rumors began to emerge that the company planned to cut up to 8% of its workforce, but it was also mentioned that the annual bonus pool would possibly be cut by at least 40%.
In the event that the dismissal of the more than 3,200 employees takes place, it would be the second in less than four months, since in September Goldman Sachs got rid of 500 employees.
It should be noted that last year, Goldman Group shares fell by around 10%, outperforming the broader S&P 500 index and even though they have shown signs of recovery at the start of the year, it is possible to depreciate again.
For its part, Morgan Stanley also got rid of 1,600 employees last December, this with the aim of having more cash flow.
According to Bloomberg, Goldman Sachs is about to release financial results linked to its credit card and installment loan business, which could post more than $2 billion in pre-tax losses.