The American bank did not confirm the information. The job cuts would correspond to 8% of its workforce.
The American bank Goldman Sachs is preparing a layoff plan which could affect up to 4,000 jobs, the Semafor site reported on Friday, December 16, due to the deterioration of the American economy but also disappointing results in retail banking. Asked by AFP, Goldman Sachs declined to comment.
A person familiar with the matter confirmed that the departures would be “probably a little higher” to what the establishment usually practices, which separates, every year, from “1 to 5%” of its workforce. Still according to this source, the decision was taken “in light of the economic situation” current, which is deteriorating. She also pointed out that the bank had recruited massively since 2019, which led to a 28% increase in its workforce. At the end of September, Goldman Sachs had 49,100 employees. The elimination of 4,000 jobs would thus be equivalent to just over 8% of the total.
The scale of the layoffs is greater than that of other Wall Street investment banks, which have also been making headcount reductions in recent weeks. Morgan Stanley is currently laying off about 2% of its employees, or some 1,600 people, according to several American media. “We are going to have to reduce our size a bit”Goldman Sachs CEO David Solomon said at a conference organized by the Wall Street Journal in early December.
Retail banking disappoints
According to Semafor, in addition to the changing economic situation, Goldman Sachs takes note of the disappointing development of its retail banking activity. A corporate and investment bank since its creation, the establishment has been trying for several years to diversify and develop activities aimed at individuals. For this purpose, the establishment had created the Marcus brand, a retail bank which has offered consumer loans and savings products since 2016. But this new entity, which required significant investment, is struggling to achieve profitability, according to Semafor.
Goldman Sachs also collaborated in 2019 on the launch of the Apple Card, a consumer credit card, a first for the establishment.