According to the Wall Street Journal, Goldman Sachs is bracing for a massive cut, slashing 3 to 4 percent of its workforce- between 1300 to 1800 employees, as part of the bank’s annual routine process. This move reflects a larger trend among corporate giants, to constantly reduce their workforce by laying off their employees. Major companies usually do it to manage costs in economic uncertainty.

As per the report, Goldman Sachs has already begun employee cuts, likely to impact various divisions within the bank. Tony Fratto, a spokesperson for Goldman Sachs, detailed the process as normal, standard, and customary. He emphasized that annual talent reviews are a standard part of the bank’s operations. Fratto noted that the bank’s overall headcount will grow by this year’s end compared to 2023.

Goldman Sachs’s Latest Layoffs

These layoffs commonly target underperforming employees, helping banks enhance operations, manage costs, and keep their workforce productive. Goldman Sachs made similar workforce reductions from 2 to 7 percent, previously based on financial performance and market conditions. Last year, the bank enforced a 6 percent reduction in January, with further cuts in May and autumn.

US Banks Slash 5000 Jobs

Shocking layoffs were also made across major US Banks in the first quarter of 2024, not just in Goldman Sachs, with terminations over 5000 positions. These significant reductions highlight the challenges of the banking industry.