Goldman planning another round of job cuts amid chill in banking
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The investment bank is working on what would be its third round of job cuts in under a year, according to sources.
PHOTO: REUTERS
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NEW YORK - Goldman Sachs Group is considering another round of job cuts amid a slump in dealmaking that has dented revenues across Wall Street.
The investment bank is working on what would be its third round of job cuts in under a year, according to people with knowledge of the plans.
The firm eliminated several hundred jobs in September, followed by about 3,200 positions
The layoffs this time are expected to affect less than 250 people and will include more-senior employees at the firm, one of the people said.
A representative for Goldman Sachs declined to comment.
Investment banks have been hit hard by a slump in dealmaking as the Federal Reserve raised interest rates aggressively to tame inflation and the war in Ukraine clouded the economic outlook.
Global mergers and acquisitions slumped to their lowest levels in more than a decade in the first quarter of 2023, while volumes for initial public offerings also fell to the lowest level since 2019.
Banking executives across the industry are re-examining costs as a rebound in dealmaking takes longer to materialise.
Rival Morgan Stanley is carrying out significant reductions, cutting roughly 3,000 jobs this quarter, Bloomberg has reported.
In February, Goldman Sachs outlined plans to seek about US$1 billion (S$1.35 billion) in expense reductions.
The chief financial officer, Mr Denis Coleman, had said the January job cuts combined with curtailing of replacement hiring after attrition would result in US$600 million of run-rate payroll reduction.
Mr Coleman also spoke about US$400 million in non-compensation expense efficiencies the firm was seeking to achieve. BLOOMBERG, REUTERS
