Goldman Sachs CEO David Solomon: layoffs could happen in mid-January

Goldman book CEO David Solomon said in a traditional year-end message to employees that Group Inc.

“We are conducting a careful review and while discussions are ongoing, we anticipate headcount reductions to occur in the first half of January,” Solomon said. “There are many factors affecting the business landscape, including the tightening of monetary conditions that are slow down economic activity. For our leadership team, the focus is on preparing the company to weather these headwinds.”

The firm can find a way to remove up to 8% of the workforce or up to 4,000 jobs, to prevent a drop in profits and revenue, people with knowledge of the matter said earlier this month, although the final figure could be low. than. Top managers were asked to identify potential cost reduction targets and no final job cut numbers were identified, the people who requested anonymity discussed internal discussions. ministry said.

A spokesperson for the New York-based company declined to comment.

“We need to proceed with caution and manage our resources wisely,” Solomon said in his message.

Goldman is on track to hit annual revenue of about $48 billion, the second-best performer just behind last year’s record. A costly foray into consumer banking and the subsequent exit along with spending on technology and integrating operations contributed to the increase in costs this year.

The proposed cuts would mark a sharper drop than those revealed by any Goldman’s rival as management struggles to achieve profit goals. Analysts predict the Wall Street giant’s adjusted annual profit could fall 44%.

Goldman executives have pointed out that the bank’s workforce has grown by 34% since the end of 2018 to more than 49,000 people in the third quarter of this year.

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