Goldman Sachs preparing layoffs across all departments as soon as next week: report

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According to a report, Goldman Sachs is preparing to conduct its first round of layoffs since the outbreak of the pandemic.

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The Wall Street banking giant is expected to cut jobs across departments next week, The New York Times reported monday.

A Goldman spokesperson declined to comment when contacted by The Post.

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The cuts will come amid a slowdown in deal-making as the economy is on the verge of recession due to fast-paced inflation.

Before the pandemic, Goldman laid off 1% to 5% of under-performers from its workforce every year. It stopped firing because of the boom in business during the pandemic.

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A possible resumption of layoffs this year comes amid a dramatic drop in revenue. The David Solomon-run Wall Street giant reported earnings of $2.93 billion in the second quarter, significantly lower than the second quarter of 2021 when the bank posted $5.49 billion.

Goldman Sachs CEO David M. Solomon speaks on stage during Pivot MIA at 1 Hotel South Beach on February 15, 2022.
Getty Images for Vox Media

Investment banking was the driving force behind the downturn – bringing in 41% less than a year ago. Trading revenue of $6.47 billion — a 32% increase year over year — slightly offset losses.

In July, The Post reported that there was talk of freezes and firings at financial firms as fears of rising interest rates and recession fueled the appetite for mergers, IPOs and other large corporate deals, according to sources.

Over the summer, both JPMorgan Chase and Morgan Stanley reported surprisingly huge profit declines. JPMorgan disclosed a 54% drop in its investment banking fees in the most recent quarter. Morgan Stanley said its equity underwriting fees were down 86%.

The impending layoffs come as the bank is taking a more aggressive approach to bringing employees back to the office and eliminating all pandemic-era perks like free coffee.

Solomon – who famously called working from home “aversion” – has signaled a return to the office with special forces. As first reported by The Post, Goldman told workers in a memo last month that it planned to lift all COVID protocols after Labor Day – a sign that it would allow employees to work from home. Will not accept excuses to do so.

In April, Solomon ended the free daily car ride to and from the office that the bank had started offering at the start of the COVID outbreak, The Post was first reported. Sources said that it now limits the allowance to those employees who work well in the evening.

Also in the spring, Goldman announced that employees would once again be on the hook for breakfast and lunch costs. Goldman increased his meal allowance for dinner from $25 to $30—two months after The Post reported that employees were catching up that they couldn’t even buy a Chipotle dinner with the stingy stipend.

Goldman Sachs
Goldman’s has ended its free coffee perk.
AP

Last week, employees filing for a mandatory return to the five-day work week at the Wall Street giant’s headquarters in Lower Manhattan received an unwanted surprise: The “free coffee” station was turned away, sources told The Post.

The complimentary “grab and go” station at the entrance to 200 West St. — cold-brewed, as well as French vanilla creamer, almond milk, soy milk and half-and-half — appeared to encourage attendance during the pandemic, according to insiders. According to.

But the brass has since determined that it doesn’t need sweetness to get people back in the office, sources told The Post. Instead, management believes that the risk of being fired should be more than enough incentive, the sources said.

Credit: nypost.com /

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