Goldman Sachs to Cut Lots of Jobs as Part of Annual Review

Goldman Sachs is preparing to implement a workforce reduction affecting between 3 and 4 percent of its employees, translating to approximately 1,300 to 1,800 positions. This reduction is part of the bank's routine annual review process.

The layoffs, which have already begun, will impact various divisions within Goldman Sachs. Tony Fratto, a spokesperson for the bank, characterized the process as "normal, standard, and customary." He emphasized that the annual talent reviews are a regular aspect of the bank's operational practices. Despite these reductions, Fratto highlighted that Goldman Sachs' overall headcount is expected to rise by the end of the year compared to 2023.

The report also notes that similar workforce adjustments are commonplace among major banks as they manage costs amid a challenging economic environment. In the first quarter of this year alone, the largest US banks collectively cut over 5,000 jobs, with Citigroup accounting for 2,000 of those positions.

Goldman Sachs' historical data shows that annual workforce reductions typically range from 2 to 7 percent, depending on the bank's financial performance and prevailing market conditions. Last year, the bank executed a 6 percent reduction in January, followed by additional cuts in May and later in the autumn.