Goldman Sachs is likely to cut up to eight per cent of its staff early in 2023, said reports. This might come to 4000 jobs. The step is likely being taken as the finanacial giant eyes sluggish global growth in the next year.
News reports by CNBC and Semafor hinted at the cuts taking place early next year. The reports predicted that the final figure may be a bit smaller than eight per cent.
Typically, Goldman Sachs cuts about one to five per cent of its staff each year, targeting underperforming workers.
But this year, the trimming is expected to be deeper than usual in light of the uncertain economic lookout.
Goldman’s staff stood at 49,100 at the end of October, up nearly 30 percent from the end of 2019 after hiring campaigns and acquisitions.
The move comes as Goldman Sachs and other investment banks have seen a big drop in fees tied to initial public offerings and described a cloudy outlook for merger and acquisition advising in 2023 due to economic uncertainty.
At a financial conference last week, Goldman Chief Executive David Solomon said capital markets activity had also been weaker than expected, with clients “taking risk down” after a volatile year.
“At the same time, we continue to see headwinds on our expense lines, especially in the near term,” Solomon said. “Ultimately, we will remain nimble and we will size the firm to reflect the opportunity set that we see in front of us.”
(With inputs from agencies)
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