American multinational investment bank and financial services company Goldman Sachs has revealed plans to eliminate more than 3,290 positions as it battles a tough economic environment.
The investment bank revenue plunged massively last year, amid a slowdown in Mergers and share openings, marking a massive reversal from profitable 2021.
This has spurred the bank to propose the laying off of over 3,000 jobs, although sources disclose that it is an estimation as the final number is yet to be disclosed.
Recall that last year in December, Goldman Sachs revealed plans to cut thousands of employees to navigate a difficult economic environment.
The company’s CEO David Solomon revealed that the headcount reduction will begin in January 2023, in an open letter to all workers.
The CEO wrote in his letter, “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 2023.
“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.”
Goldman Sachs is currently going through a critical period in its finances, as the company’s net sales were down 57 percent year-on-year in its third quarter (Q3) report for 2022.
Also, its net revenues from corporate landing were down to 77 percent, while equity underwriting was down to 79 percent compared to the third quarter (Q3) of 2021.
It is however interesting to note that as the Investments bank revenue and profits declined in the past years, its headcount rose significantly. It had a total of 49,100 employees at the end of the third quarter after it added a significant number of staff during the Covid-19 era.
Investors King understands that Goldman Sachs is not the only financial firm that is currently faced with headwinds due to the current economic downturn that has affected the global financial market.
Other financial giants such as Deutsche Bank, Barclays, Morgan Stanley, and Credit Suisse Group, have all slowed down hiring, with some laying off some of their workforces to navigate the economic downturn.