Goldman Sachs will become the first major U.S. banking firm to conduct layoffs that could impact hundreds of employees.
According to an insider, the firm will reinstate its annual employee culls that typically target 1% to 5% of poor performers, indicating that hundreds of jobs will be slashed this month.
The reason for the job cuts varies. Banking investments have dwindled, the economy remains volatile and employees are more likely than ever to push back against their employers’ wishes for in-person office arrangements.
Wall Street is notorious for laying off lower-ranked performers in the weeks following Labor Day, but the pandemic and increased demand for talent led the practice to be paused across several firms.
While Goldman has yet to directly comment on these layoffs, they are unlikely the last bank to take this route.