Goldman Sachs will slash thousands of jobs as it braces for an economic downturn.
The firm is one of many Wall Street organizations that are turning to layoffs in order to stay afloat throughout the incoming recession. Over the last year, banking revenue has plummeted followed by a decrease in mergers and shares.
As of the end of Q3, Goldman Sachs had over 49,000 employees following a pandemic-driven hiring spree. The percentage of job cuts is still in discussion, but are expected to largely impact the company’s consumer business, such as Marcus.
This news comes just months after the company fired 500 employees, reinstating an annual job trimming practice that had been paused at the beginning of the pandemic.
“GS needs to show that its costs are as variable as its revenues, especially after a year when it provided special rewards to top managers during the boom times,” wrote Mike Mayo, a banking analyst at Wells Fargo.
“Goldman Sachs now needs to show that it can do the same when business is not as good and that they live up to the old Wall St. adage that they ‘eat what they kill.”
