Goldman Sachs to Trim Workforce

Goldman Sachs plans to cut a few hundred employees as part of its annual performance review process, according to The Wall Street Journal. The review, which typically results in the dismissal of 1% to 5% of staff, is expected to impact 3% to 4% of the bank’s global workforce, or approximately 1,300 to 1,800 employees across various departments.

Goldman employed around 45,300 people as of June, and the annual reviews, which resumed in 2022 after being paused during the COVID-19 pandemic, are set to continue through the fall. A Goldman spokesperson, Tony Fratto, disputed the reported numbers, calling them inaccurate, but confirmed the reviews are a standard procedure.

Last September, Goldman initiated a similar round of layoffs, affecting at least 450 employees, marking the fourth round of cuts in 12 months, including a significant reduction of 3,200 employees in January 2023. The review process also factors in in-office attendance, with Goldman pushing for full-time office presence, especially among investment bankers.

Goldman’s layoff announcement follows the bank’s recent success in lowering its stress capital buffer requirement after a dispute with the Federal Reserve. Despite the layoffs, Goldman has reported positive performance metrics, including a 21% increase in investment banking fees and a 27% rise in asset and wealth management revenues in the second quarter of this year.