Goldman Sachs Plans Layoffs Affecting 3-4% of Workforce, Reports WSJ

Goldman Sachs Plans Layoffs Affecting 3-4% of Workforce, Reports WSJ

Goldman Sachs, the global investment banking giant, is reportedly planning to lay off 3-4% of its global workforce, equivalent to roughly 1,300 to 1,800 employees. This move is part of the firm's annual "strategic resource assessment" (SRA) process, which historically has led to headcount reductions ranging from 2% to 7%, based on performance evaluations and other factors. The Wall Street Journal first reported the planned layoffs, citing anonymous sources familiar with the matter. Goldman Sachs has yet to officially confirm the report, but it is expected to make an announcement in the coming weeks. The layoffs come as Goldman Sachs faces a challenging economic environment, with inflation, rising interest rates, and geopolitical uncertainty impacting its businesses. The firm has also been grappling with increased competition from rival investment banks and fintech companies. Goldman Sachs CEO David Solomon has previously stated that the firm is focused on optimizing its operations and reducing costs. The planned layoffs are seen as part of this broader strategy. The layoffs are expected to affect employees across various divisions and regions, though specific details have not been disclosed. Goldman Sachs has a global workforce of approximately 49,000 employees. The news of the planned layoffs has raised concerns among employees and industry observers. Goldman Sachs has a reputation for being a highly selective employer, and its layoffs are seen as a sign of the challenges facing the financial industry.