World-renowned banking firm Goldman Sachs is the latest company that has joined the ‘layoff’ bandwagon. According to various media sources, Goldman Sachs plans to cut several hundred jobs this month, a move which may not surprise many. This is because the Wall Street giant has conducted an annual culling cycle before, which has been on pause during the COVID-19 pandemic.
In July, the NY times reported that the firm planned to reinstate annual performance reviews, typically to determine which employees aren’t up to the task.
The move typifies a trend experienced by major brands throughout the United States, with companies like Apple, Calm, Meta and more, trimming their workforces ahead of an economic recession. Social media giant Meta disbanded its responsible innovations team as a way to cut the company’s costs. Apple also laid off roughly 100 contract-based recruiters one month after announcing plans to slow down hiring while Calm.com has also laid off 20% of its staff.
Earlier this month, Snap Inc, the parent company of Snapchat, laid off approximately 20% of its more than 6,400 employees, which comes out to roughly 1,280 people.
According to various media sources, the cuts at Goldman Sachs could begin as early as next week and impact employees across the company.
The investment bank had warned it might have to cut expenses as the economic outlook worsens, as reported by BBC. The firm reported a 48% slump in its second-quarter profit as its clients face inflation, rising interest rates, the pandemic and the ongoing war in Ukraine. Its investment banking division generated revenues of $2.1 billion, down 41% compared to a year ago.
Bloomberg reported that Goldman had 47,000 employees at the end of the second quarter.
More than 600 startups and tech firms have laid off more than 100,000 people in 2022, according to professional social network Blind’s tech layoffs tracker.