Goldman Sachs is preparing to reduce its workforce by 3% to 5% as part of its annual performance review process this spring. This information comes from a source familiar with the matter who wished to remain anonymous due to the sensitive nature of personnel discussions.
Based on Goldman Sachs’ global workforce of 46,500 employees at the end of December, this reduction could result in over 1,395 job cuts. In a similar review conducted in September, the firm made fewer cuts. A Goldman Sachs spokesman confirmed that this action is part of the company’s “normal, annual talent management process,” but declined to provide specific details. This news was initially reported by eFinancialCareers, a financial news and job site.
Throughout 2023, Goldman Sachs implemented several rounds of workforce reductions in response to a stagnant dealmaking environment and its withdrawal from a loss-making consumer business. However, the banking climate has since shown improvement. In January, Goldman Sachs reported its highest quarterly profit in over three years, driven by increased deal fees for investment bankers and active market conditions benefiting traders.
This positive financial performance followed a challenging period for the firm. In January, CEO David Solomon received an $80 million stock bonus as an incentive to remain in his position for the next five years. This marked a significant shift for Solomon, whose leadership had been questioned following the unsuccessful foray into retail banking.
Similarly, John Waldron, Goldman Sachs’ president and chief operating officer, and a potential successor to Solomon, also received an $80 million retention bonus in restricted stock. Waldron recently joined the company’s board of directors.
