A leading global investment banking, securities, and investment management firm, Goldman Sachs is preparing for layoffs that could come as early as this month.
According to people with knowledge of the matter, The company is planning to eliminate several hundred roles starting this month. While the total number is less than some previous rounds.
Goldman Sachs chief financial officer, Denis Coleman, told analysts in July that the bank was “probably reinstating our annual performance review of our employee base at the end of the year.”
The move comes as there is inflation by raising rates and raising concerns that the U.S. economy will tip into recession. The war in Ukraine has added further uncertainty to the mix.
Before the pandemic, Wall Street firms typically laid off their bottom performers in the months after Labor Day and before bonuses are paid out. The practice was put on pause during the last few years amid a hiring boom.
The New York-based firm said in July that it has planned to slow hiring and reinstate annual performance reviews — foreshadowing the job cuts it planned to undertake later in the year. It’s an effort to rein in expenses amid what it called a “challenging operating environment.”
Goldman had 47,000 employees at the end of the second quarter. Goldman joined companies like Snap, Microsoft, Twitter, TikTok, Meta, and Google which have either laid off employees or frozen new hirings.
The development of either layoff or hiring slowdown comes after IT companies, crypto exchanges, and financial firms cut out jobs and slow down the hiring process due to slow global economic growth caused by higher interest rates, and rising inflation.