Goldman Sachs Group Inc. might eliminate several 4,000 David Solomon is fighting for the jobs or 8% of all employees to A slump in profits and revenues.
We asked top managers to answer these questions to A source familiar with this matter stated that it was possible to pinpoint cost-reduction targets. However, no final job-cut number is known. to be identified in internal discussions.
The Wall Street titan’s headcount has risen in the last few years, as Solomon made acquisitions to Build a larger company. The unit suffered severe losses due to an expensive expansion into consumer banking. This was despite a slower business climate for dealmaking, and soaring asset prices.
Technology and the integration of operations have also been a contributing factor. to the cost bleed, with analysts predicting the company’s adjusted annual profit could fall 44%. These proposed reductions would be a more drastic pullback than any other plans. Goldman’s rivals as management struggles to To achieve profitability targets
“We continue to see headwinds on our expense lines, particularly in the near term,” Solomon made these remarks at last week’s conference. “We’ve set in motion certain expense-mitigation plans, but it will take some time to realize the benefits. Ultimately, we will remain nimble and we will size the firm to reflect the opportunity set.”
Goldman’s return on equity — a measure of profitability — stood at 12% for the first nine months of 2022, below the firm’s target of 14% to 16%.
This year shares have fallen 1.4% and 9.8% respectively. to New York, 9:31 AM – $345.12
Bank has moved already to The bonus pool will be slashed for the entire year. This is because compensation is its biggest expense. It may also reduce the amount of payouts. to Divisions with improved performance
Solomon has said he’s dialing back his ambitions for consumer banking and signaled he’s reviewing other business lines to Limit costs and manage your headcount. Goldman has decided to Bloomberg estimates that there will be at most a handful of hundred fewer jobs in the retail-banking business. reported The cuts were made earlier in the week. The latest cuts go beyond the firm’s annual exercise of weeding out underperforming staff, which was the focus just months ago.
The bank’s workforce surpassed 49,000 in this year’s third quarter, up Increased by 34% from the End of 2018
An spokesperson from the New York-based company refused to speak for them. to comment. Semafor had earlier Friday reported about the possible job cuts.
Our new weekly Impact Report newsletter examines how ESG news and trends are shaping the roles and responsibilities of today’s executives. Sign up here