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.
avatar
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

positive
negative
Published On
2023-01-09 14:55

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


buy-coffee
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..

AI-mazing returns: The top 3 AI stocks to invest in now!
Don't miss out on the opportunity to invest in these cutting-edge companies and be a part of the future of AI.
By Staff | 2 weeks ago

Tilray Q2 Earnings Leave Investors Wanting More
While Tilray has maintained its leading market share in the recreational cannabis market in Canada and the medical cannabis market in Europe, its Q2 earnings, which included a loss per share of -$0.11 and an adjusted loss per share of -$0.06, have left investors questioning the company's future growth prospects.
By Staff | 4 weeks ago

Qualcomm's partnership with Iridium takes connectivity to new heights
Qualcomm's partnership with Iridium brings satellite-based messaging technology to phones, laptops and other devices, providing new opportunities for connectivity in any location.
By Staff | 4 weeks ago

Hologic's Fiscal Q1 2023 Earnings: A Ray of Hope in a Stormy Year
Hologic has managed to achieve impressive financial results in Fiscal Q1 2023.
By Staff | 4 weeks ago

Why Small and Mid-Cap Stocks Deserve Your Attention
Why valuations make small and mid-cap stocks an attractive option in a potential recession.
By Staff | 4 weeks ago

Get Ready for a Bumpy Year
Despite strong job creation numbers, deeper issues lurk beneath the surface as the Federal Reserve's rate hikes and high inflation threaten to derail the economy.
By Staff | 4 weeks ago