Goldman Sachs to Cut Jobs Amidst Declining Investment Banking Income

    Goldman Sachs Group is preparing to embark on one of the most extensive layoffs of its workers beginning this month. This move is the biggest ever since the start of the pandemic.




    The Wall Street Giant is planning to discard hundreds of job roles and lay off people that can start next week, according to people knowing the new development.

    Though the total number of job cuts is less than the previous rounds, the layoffs are mainly on the assumption of annual culling followed by Goldman, which had paused during the lockdown of the pandemic.

    A slump in earnings after record-breaking performance over the years has resulted in the move. Goldman Sachs is considered the banking bellwether, and the move on its part is a sure sign of the chill set for the industry.

    According to Bloomberg Data, banks are expected to post a more than 40% decline in revenue this year. The New York-based Goldman had earlier in July said it plans to slow hiring and reintroduce the annual performance reviews putting the jobs cuts it had planned to exercise later this year on the back burner. The efforts by the firm are to cut costs in a challenging environment.

    The annual performance review is done to weed out the nonperformers. Denis Coleman, the Chief Financial Officer, had said at that time that they could reduce the pacing of replacement hiring after losing employees due to attrition. At the end of Quarter 2 in 2022, Goldman Sachs’s employee strength stood at 47,000, up from 41,000 a year ago.

    Bloomberg News and New York Times reported that Goldman’s jobs cuts were on the cards on Monday. A spokeswoman at Goldman declined to comment on the matter.

    Lower Investment Banking Deals

    Goldman Sachs suffered along with its competitors on Wall Street. The industrywide slump due to low initial public offerings and mergers affected its bottom line in 2022. A slowdown in investment banking activities due to market volatility that boosted trading gains weigh on asset management and capital markets.

    After a record-breaking 2021, Goldman investment banking revenue fell 41 %   for the second quarter in 2022 compared to the same period in 2021, this showed a steep decline in underwriting activities even as the company posted a 32 % gain in trading operations. During the same period, profit fell by nearly 50% compared to 2021.

    The second quarter saw Goldman reducing its operating expenses compared to the previous years. This was mainly because of lower compensation and employee benefits. The company, however, reported higher costs in the growth initiative areas.

    Shares of Goldman Sachs are down 10% and more this year and 15% approximately compared to last year. This is higher when compared with a 7.5% drop in the S&P Financial Index in the previous year.



    RELATED ARTICLES

    Monetize Magnet

    Monetize Magnet Review – The Best Crypto and Forex CPA Network

    In today's world, cryptocurrency has reached new heights, expanding continuously and providing online earning opportunities...
    Payback LTD

    Payback LTD Review (Payback-ltd.com) – Find out Why This Fund Recovery Service Provider

    Payback LTD Review Losing your hard-earned money in what seemed like a good opportunity can be...
    Financial Investments

    Understanding Risk Management Strategies for Financial Investments

    In the ever-evolving landscape of finance, understanding and effectively managing risks associated with investments is...
    Debt Management

    Mastering Debt Management Strategies for Long-Term Financial Health

    In the pursuit of financial stability, managing debt effectively stands as a crucial pillar. Debt...
    Index Fund

    5 Key Strategies to Invest Your 1 Lakh Investment in an Index Fund

    If you are an Indian investor with Rs 1 lakh in hand, ready to venture...
    Trading Platforms

    Navigating the Modern Landscape of Online Trading Platforms

    In the ever-evolving realm of financial markets, one of the most significant milestones has been...
    MBA Programme

    Dual Degree MBA Programme: A Unique Educational Opportunity

    In today's world, professional success requires more than traditional management skills. It calls for a...
    women ipl

    Women IPL Sensation Shreyanka Patil: From Fan to Champion

    In a cricketing universe usually ruled by dudes, Shreyanka Patil, the rookie wonder for Royal...
    Monetize Magnet

    Monetize Magnet Review – The Best Crypto and Forex CPA Network

    In today's world, cryptocurrency has reached new heights, expanding continuously and providing online earning opportunities...
    celsius drink

    Celsius Drink – What Is It and How Safe Is It?

    These days, you must come across your social media feeds with an advertisement for a...
    low porosity hair

    Low Porosity Hair Problem? Slay Locks with Moisture Miracle

    Have you ever experienced your hair being stubbornly resistant to moisture? That's low porosity hair...