Goldman Sachs is planning to cut almost 1,300 jobs from its global workforce as part of an annual review, according to a report by The Wall Street Journal,
The job cuts will be around 3% and 4% of its workforce, which would be between 1,300 and 1,800 people as the Goldman had employed about 45,300 people as of late last year, the report said. Job cuts will happen in the bank’s various divisions.
Job cuts which have already begun and will continue till fall are a part of the investment bank’s annual review process known as a “strategic resource assessment,” or SRA.
“Our annual talent reviews are normal, standard, and customary, but otherwise unremarkable,” the report said quoting Tony Fratto, a Goldman spokesperson. Overall head count at Goldman is expected to be higher at the end of 2024 compared to 2023, he noted.
The report stated that Goldman usually aims to cut around 2% and 7% of the total workforce annually on the basis of performance factors. This range has changed over time due to market conditions and the bank’s financial outlook.
The annual culling process will take into account many factors. One such factor is in-office attendance. The bank and its peers had relaxed this rule during the pandemic. But now banks are getting strict on employees who do not come to office, the report said.
Other banks, such as JPMorgan and Citigroup, have similar measures to remove underperformers each year.
Goldman had discontinued its SRA program during the pandemic, at a time when dealmaking had hit record levels. It continued with the program in 2022.
According to the report, Goldman reported a 21% increase in investment-banking revenue in the Q2 2024 compared with a year ago. The bank also reported a 27% rise in revenue in its asset- and wealth-management business.
“From what we’re seeing, we are in the early innings of a capital markets and M&A recovery,” the report quoted Goldman Chief Executive David Solomon statement on a call with analysts.
