Goldman Sachs Group is working on a new round of job cuts that will be announced in a matter of weeks, said the company’s chief executive, david solomon, in his traditional end-of-year message to the staff.
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“We are conducting a careful review and although discussions are still ongoing, we anticipate our headcount reduction to take place in the first half of January.”, Solomon said.
“There are a variety of factors affecting the business outlook, including tightening monetary conditions that are slowing economic activity. For our leadership team, the focus is on preparing the company to weather these headwinds,” he added.
The company could try eliminate up to 8% of your workforceor up to 4,000 jobs, to contain a drop in earnings and incomepeople with knowledge of the matter said in early December, though the final figure could be lower.
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has been asked to senior managers that identify potential cost reduction targets, and the final number of job cutssaid the people, who asked not to be named due to internal deliberations.
A company spokesperson with headquarters in New York declined to comment.
“We need to proceed with caution and manage our resources wisely,” Solomon said in his message.
With the drop in revenue from investment banking and the looming recession, Wall Street is in reduction mode.
The job cuts and hiring freezes that affected to the world of technology have reached the financial industry, with bank executives preparing for what is expected to be a lean year ahead.
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Morgan Stanley, Credit Suisse Group AG and Barclays Plc have already laid off staff or have announced plans to do so in the coming months, and some smaller companies even have completed multiple rounds of termination.
Goldman is on track to publish that it achieved $48 billion in annual revenuehis second best performance, behind only last year’s record.
An expensive foray into consumer banking followed by a subsequent withdrawal, along with spending on technology and integration operations have contributed to cost loss this year.
Proposed pay cuts would mark a steeper setback that the plans revealed by any of the rivals of Goldman, while management struggles to meet profitability targets.
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Analysts predict adjusted annual profit of the wall street giant could fall 44%.
Goldman executives have pointed out that the bank’s workforce has skyrocketed 34% from the end of 2018 to more than 49,000 in the third quarter of this year.