Golman Sachs expects job cuts will be unveiled in early January

Goldman Sachs Group Inc Chief Executive Officer David Solomon on Thursday said a fresh round of job cuts could be inbound for the first half of January, Bloomberg reported.

In his traditional year-end message to staff, Solomon said: ‘We are conducting a careful review and while discussions are still ongoing, we anticipate our headcount reduction will take place in the first half of January.’

‘There are a variety of factors impacting the business landscape, including tightening monetary conditions that are slowing down economic activity. For our leadership team, the focus is on preparing the firm to weather these headwinds,’ he added.

Bloomberg said that Goldman Sachs may look to cut up to 8% of its workforce, or 4,000 jobs, to counteract a drop in revenue and profit, citing people with knowledge on the matter, who added that the final job cut figure could be lower than suggested.

These sources indicated that top managers have been asked to identify cost-reduction targets, although no final job cut figure has been decided. Goldman Sachs’s workforce has grown by 24% since the end of 2018, reaching 49,000 as of the third quarter of 2022. The company typically cuts between 1% and 5% of its workforce per year, targeting underperforming employees.

The company is set to post annual revenue of £48 billion, its second best performance behind last year’s record, while adjusted profit could fall 44% according to analysts.

‘We need to proceed with caution and manage our resources wisely,’ Solomon said in his message.

Goldman Sachs shares were down 0.3% trading at $340.87 per share on Wednesday afternoon in New York.

https://www.bloomberg.com/news/articles/2022-12-28/goldman-sachs-ceo-solomon-says-staff-cuts-are-coming-next-month?srnd=premium-uk&leadSource=uverify%20wall

By Harvey Dorset, Alliance News reporter

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