Goldman Sachs Trims the Fat with 3,200 Job Cuts
Goldman Sachs is cutting approximately 3,200 jobs from its core banking and trading units.
Staff or Guest writer for The Dog of Wall Street.
2023-01-09 14:55

Goldman Sachs is getting ready to trim the fat and cut 3,200 jobs from its core banking and trading units. This marks one of the biggest rounds of layoffs in the company's history and shows that the investment bank is feeling the pinch amid declining investment banking revenues and the looming threat of a recession. Goldman Sachs Trims the Fat with 3,200 Job Cuts
The cuts, which will affect about a third of the workforce in these units, are set to begin in the middle of the week, just days before scheduled compensation discussions. Those who are lucky enough to keep their jobs can expect reduced compensation and lower bonuses, a far cry from last year when revenues were higher and bonuses were significantly bigger.

The job cuts at Goldman Sachs are part of a wider trend on Wall Street, where firms are battening down the hatches amid a challenging economic environment. Goldman Sachs is not the only one to announce job cuts in recent weeks - Morgan Stanley, Credit Suisse, and Barclays have all either already begun firing or announced plans for layoffs in the coming months. The situation at Goldman Sachs is further exacerbated by mistakes it made in its earlier foray into retail banking that resulted in losses that accumulated much faster than anticipated.

Despite the job cuts, Goldman Sachs is still planning on hiring and bringing on its regular analyst class later in the year. The company is also set to unveil financials tied to a newly created unit that is expected to record over $2bn in pre-tax losses. The unit houses Goldman Sachs' credit card and installment lending business and is just one more source of pressure for the investment bank. It's not yet clear how the job cuts will be distributed, but they are expected to be broad in nature.

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

Published On
2023-01-09 14:55

About the Author
Staff or Guest writer for The Dog of Wall Street.

You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

NVIDIA Earnings: Will They Even Matter?
Let’s examine the bear and bull case for NVIDIA’s earnings next Wednesday.
By Mike Sakuraba | 2 weeks ago

2 Stocks I'm Avoiding as Markets Hit New All-Time Highs
People like to throw around the term bubble a lot when the market goes up a large amount in a short time. But is it really a bubble or did they just miss out on the action? I usually say it’s the latter.
By Mike Sakuraba | 3 weeks ago

2 Earnings Calls I'm Watching Next Week
It’s been a while since I’ve done this but it was a good practice and forced me to actually listen to the earnings calls of companies I invest in.
By Mike Sakuraba | 3 weeks ago

2 Stocks You Can Still Buy at All-Time Highs
For some reason, we have always been taught to try and buy low and sell high. While that might seem logical, it is a good way to miss out on buying some of the best stocks.
By Mike Sakuraba | 3 weeks ago

24 Assets to Invest in for 2024: Part 7
In Part 6, I spoke about chip stocks, Axon (NASDAQ: AXON),Celsius (NASDAQ: CELH),and the iShares Bitcoin Trust (NASDAQ: IBIT).
By Mike Sakuraba | 4 weeks ago

2 Stocks I'm Buying When Markets Pull Back
Here are 2 stocks I’m prepared to pull the trigger on as soon as the market pulls back.
By Mike Sakuraba | 4 weeks ago

24 Assets to Invest in for 2024: Part 8
In Part 7, I spoke about Rivian (NASDAQ: RIVN),Chainlink, and Evolution AB (OTC: EVVTY)
By Mike Sakuraba | 4 weeks ago

Tesla Bears Rejoice: Another Bad Quarter from Tesla
I think the next year or two is going to be tough for the company and the stock.
By Mike Sakuraba | 1 month ago