Goldman Sachs is set to begin a goliath round of job cuts with up to 3,200 redundancies due to be finalised from today (11 January), according to Bloomberg.
The bank has a workforce of 49,000 globally, with 6,000 staff in the UK. The cuts are anticipated to affect most of the firm’s major divisions, but are believed to be focused within the investment banking department, with some UK roles affected.
Chief executive David Solomon told staff to expect the job losses in a message last month, saying they were necessary to “weather the headwinds” caused by interest rate rises.
At a conference in December, Solomon said: “We’ve set in motion certain expense mitigation plans, but it will take some time to realise the benefits. Ultimately, we will remain nimble and we will size the firm to reflect the opportunity set.”
Net revenues in the firm’s investment banking division were $1.58bn in the three months to 30 September 2022, 57% lower than in the same period of the previous year.
Meanwhile, its asset management division reported a 20% drop in revenues when compared with Q3 2021. The firm’s full-year report is due to be released on 17 January.
Portfolio Adviser has contacted Goldman Sachs for comment but none was received ahead of publication.