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Goldman Sachs plans to implement a series of layoffs in the coming weeks that threatens to result in hundreds of job losses among bank employees, according to a person briefed on the matter.
In a sign of slowing trading on Wall Street, Goldman will relaunch its annual weeding out of underperforming bankers, which it paused during the pandemic at a time when banks were struggling to cope with the workload.
The process typically results in between 1 and 5% of the company’s employees losing their jobs, with the looming review expected to result in layoffs down that range, the person said.
At the end of June, Goldman had about 47,000 employees in investment banking, trading, asset and wealth management, consumer banking and operational functions.
A Goldman spokeswoman declined to comment. The layoffs were first reported by The New York Times on Monday.
Goldman Chief Financial Officer Denis Coleman telegraphed the layoffs in July when he said the bank was looking for ways to cut costs, including reintroducing year-end performance reviews of its employees.
The Financial Times previously reported that Goldman had suspended the hiring of some replacements for departing bankers.
The planned layoffs are indicative of broader concerns in funding job cuts amid declining trading activity and slowing economic growth in the United States and Europe.
This reflects the feast or famine nature of the banking sector, with the planned slaughter coming after a year of record profits in 2021 for the sector.
Read more about job cuts at Goldman Sachs here