Goldman Sachs Group Inc. is embarking on one of its biggest rounds of job cuts ever as it locks in on a plan to eliminate about 3,200 positions this week, with the bank’s leadership going deeper than rivals to shed jobs.
The firm is expected to start the process mid-week and the total number of people affected won’t exceed 3,200, according to a person with knowledge of the matter. More than a third of those will likely be from within its core trading and banking units, indicating the broad nature of the reductions.
The bank is also poised to unveil financials tied to a new unit that houses its credit card and installment-lending business, which will record more than $2 billion in pretax losses, the people said, asking not to be identified discussing private information.
A spokesperson for the New York-based company declined to comment. The cuts in its investment bank are elevated by the inclusion of the non front-office roles that were added to divisional headcount in recent years. The bank still has plans to continue hiring, including inducting the regular analyst class later this year.
Under Chief Executive Officer David Solomon, headcount has jumped 34% since the end of 2018, climbing to more than 49,000 as of Sept. 30, data show. The scale of firings this year is also affected by the firm’s decision to mostly set aside its annual cut of underperformers during the pandemic.
That’s left the company facing a 46% drop in profits, on about $48 billion of revenue, according to analyst estimates. Still, that revenue mark has been buoyed by the trading business, which will post another jump this year, helping the firmwide figure notch its second-best performance on record. The trading division is expected to post a 14% jump in revenue for 2022, bring in more than half the firm’s total. Banking fees are expected to be down more than 50%.