Goldman Sachs To Lay Off Employees In Fresh Round Of Job Cuts: Report

Goldman Sachs is planning to dismiss employees who are underperformers in a fresh round of layoffs, which is a part of its annual evaluation of staff.

Sources were quoted as saying by Financial Times, the workforce reduction for this year is expected to fall within the lower end of the bank's typical range, which spans from 1% to 5%.

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Goldman Sachs had halted job cuts during the pandemic, however, continued the tradition of performance-based elimination of employees after Covid in July, said CEO David Solomon. 

Solomon also hinted that the company would do the performance-based elimination late this year as well. The performance review will also enable executives to determine compensation decisions at the conclusion of the fiscal year. 

As per reports, the company has already begun the initial process of elimination, wherein managers are listed out the names who may be affected by the fresh round of layoffs by Goldman Sachs.

However, no official announcement by Goldman Sachs spokesperson has been made on the planned performance-based elimination.

The company reduced its headcount by about 3,200 in the first quarter in its biggest round of layoffs since the 2008 financial crisis. In May, it laid off around 250 employees.

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The inclusion of belt-tightening discussions in Goldman Sachs' executive meetings is further evidence of the firm's heightened efforts to expedite its cost-cutting initiative, aiming to reduce expenditures by $1 billion. Managers are increasingly scrutinizing smaller expense items and considering additional staff reductions as part of this accelerated drive.