Up to 5 per cent of Goldman Sachs workers to get the sack
The big banking firm is firing as many as 2350 workers after profit tanked off the back of weak profits.
Global banking firm Goldman Sachs is preparing for a round of mass sackings as the economic downturn takes its toll.
The multinational bank plans to cut between one to 5 per cent of its staff who are deemed the lowest performing workers, across all levels of the company.
That’s between 470 and 2350 workers out of the bank’s 47,000-strong workforce.
In July, CNBC flagged that lay-offs were on the horizon and earlier on Tuesday, the New York Times reported that Goldman Sachs was introducing the measure amid tough market conditions.
Now, the rumoured lay-offs could happen as soon as next week.
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An inside source told the publication that as there had been a two year gap between job cuts, Goldman would most likely ease into the lay-offs.
As a result, the number of employees getting the chop are expected to be on the lower end of its 1 to 5 per cent target, likely around several hundred people.
Goldman Sachs is well known for routinely culling its staff before bonuses have to be paid out at the end of the year but the company paused this practice during the last two years as the pandemic went on.
The firm is now reportedly undertaking this measure as a cost cutting strategy while profits languish.
Goldman Sachs’ half yearly profit plunged nearly 50 per cent from a year earlier while at the same time its investment arm’s revenue fell 41 per cent the year before.
Goldman is far from the first large, well-established company to look at lay-offs as an option as tough market conditions bite.
Earlier this month social media company Snapchat laid off 20 per cent of its staff – 1300 workers – amid low revenue growth.
Last month, Facebook laid off 60 contractors selected “randomly” by an algorithm after the CEO, Mark Zuckerberg, admitted to a “slump” in growth.
Also in August, Ford laid off 3000 staff in a company-wide restructuring effort.
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