Goldman Sachs staff brace for news on whether it will continue to work on Wednesday.
The long-anticipated job cuts at the Wall Street giant are expected to represent the biggest reduction in headcount since the financial crisis and are likely to affect most of the bank’s major divisions, investing under attack. The banking sector faces the most severe cuts, sources told Reuters this month.
Anonymous sources said more than 3,000 employees will be laid off.
The job cuts began in Asia on Wednesday, when Goldman Sachs completed cuts to its private wealth management division and laid off 16 private bank staff at its offices in Hong Kong, Singapore and China, a person familiar with the matter said. About eight staffers have also been laid off at Goldman’s research arm in Hong Kong, with layoffs continuing at investment banking and other divisions, sources said.
Similar moves were expected in major office hubs for banks in New York or London during the day on Wednesday. The bank also maintains a small presence in Canada, with a foothold in Toronto’s financial district.
additional spending savings
The Financial Times reported Wednesday that Goldman’s layoff plans will be followed by a broader spending review that takes into account corporate travel and expenses.
Goldman Sachs declined to comment.
Goldman had 49,100 employees at the end of the third quarter after adding a significant number of staff during the coronavirus pandemic.
Lenders have also cut annual bonus payments, reflecting the recession this year, with payments expected to fall by about 40%.
Global investment banking fees will almost halve in 2022, with $77 billion earned by banks, down from $132.3 billion a year ago, according to data from Dealogic.
Wall Street’s major banks have processed $517 billion worth of stock trades by late December 2022, according to Dealogic.