Goldman Sachs targets over 1,300 underperformers in annual jobs cull: WSJ
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The news: Goldman Sachs is cutting over 1,300 employees as part of its annual performance review, targeting the bottom 3% to 4% performers, The Wall Street Journal reported citing unnamed sources.
The numbers: The layoffs have already started and are expected to continue across the bank over the next few weeks and into the fall. It will impact between about 1,300 to 1,800 employees, the paper said.
Tony Fratto, a spokesman for the firm, described the annual talent reviews as “unremarkable” routine, telling the paper the bank anticipates having a larger workforce by the end of 2024 than it did in 2023.
The context: Goldman had paused its so-called “strategic resource assessment” during the pandemic but resumed it in 2022.
In July, Goldman posted a 21% jump in investment banking revenue and a 27% increase in asset and wealth management revenue as it refocused on core operations following a decision to exit from consumer lending.
At the time, CEO David Solomon said the bank was in the “early innings of a capital markets and M&A recovery.”
Goldman’s shares have surged over 30% this year and are hovering around a recent record high of USD517.26.
The sources: The Wall Street Journal, The Financial Times
