In response to decreasing profitability, investment behemoth Goldman Sachs has initiated a large round of layoffs across the globe.
The layoffs will impact up to 3,200 employees, or around 6.5% of the bank’s workforce, including employees in the United Kingdom.
The reductions are among the most significant made by banks this year, as sluggish economic growth exerts pressure on lenders.
Additionally, Goldman is investigating its spending, which includes bonuses and the purchase of two private jets.
“It’s ludicrous to focus on any single area or item when we’re looking at spending throughout the entire company,” a representative told.
Goldman, which employs approximately 49,000 employees worldwide and approximately 6,000 in the United Kingdom, has already eliminated hundreds of positions this year.
David Solomon, the company’s chief executive officer, has consistently expressed concern about the economic outlook over the past few months, stating that clients were becoming cautious and that the situation compelled him to consider cost reductions.
In comparison to 2021, when business was thriving, the bank’s revenue for the first nine months of this year decreased by 20%. Profits decreased considerably worse.
Morgan Stanley and Citigroup are among the other large banks that have reduced headcount in recent months due to rising economic uncertainty and a market decline that has dampened mergers and stock listings.
