The multinational investment bank and financial services giant Goldman Sachs is reported to be considering laying off a massive 3,900 of its employees in January next year.
The banking giant has a total of 49,000 employees across its offices globally. As per a Semafor report, Goldman is preparing to undertake a wide layoff in January, firing close to 4,000 employees, as the investment banking heavyweight looks to boost its profitability amid the ongoing economic headwinds.
The said job cuts will constitute 8% of the bank’s global work pool.
According to the financial market data provider, Refinitiv, fees of investment banks globally have tumbled by 35% so far this year in 2022.
The stock of the Wall Street’s ace banker has been under pressure since the past few years, with its market valuation or market capitalization lagging largely behind its competitors like the US-based multinational investment bank Morgan Stanley.
Its shares price has shot down by almost 10% this year.
Goldman Sachs’ chief executive David Solomon is on the lookout to improve the bank’s stock market valuation and profitability. Its net profit in the first nine months of 2022 declined by 44%, due to which its imperial return on tangible equity target fell short by 14%.
At the bank’s financial services conference that was held last week, Solomon had agreed that the giant will see some job cuts ahead.
This nod comes in line with the reports stating that the company has asked its managers to dot down and identify a list of low performing employees in the company.
At the conference last week, Solomon said, ““We continue to see headwinds on our expense lines, particularly in the near term. 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.”
