Goldman Sachs will reportedly announce fresh layoffs this week where around 3,200 employees are likely to lose their jobs.
New Delhi: Goldman Sachs will reportedly announce fresh layoffs this week where around 3,200 employees are likely to lose their jobs. The company is likely to start the process mid-week and the job cuts should not exceed over 3,200.
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The teams which will be mainly affected by the layoffs included core trading and banking units, according to a report by Bloomberg. Earlier, Goldman chief executive, David Solomon, said the partnership was bracing for slower economic growth as central banks raise interest rates.
“We are conducting a careful review and while discussions are still ongoing, we anticipate our headcount reduction will take place in the first half of January,” Solomon said, The Guardian reported, according to news agency IANS.
After a bumper year in 2022, teams working on mergers and takeovers are particularly at risk in the coming 12 months as interest rates rise, increasing the cost of borrowing the cash needed to fund new deals. Investment banks had enjoyed a boom year in 2021, as companies launched a huge wave of mergers and acquisitions after coronavirus pandemic lockdowns.
Goldman Sachs and other banks expanded to take advantage, but the number of lucrative deals fell back in 2022 amid rising interest rates around the world. “There are a variety of factors impacting the business landscape, including tightening monetary conditions that are slowing down economic activity,” Solomon said in the message.
“For our leadership team, the focus is on preparing the firm to weather these headwinds.” Goldman is still forecast to report big profits for this year and next.
Source: news.google.com
