Goldman Sachs
will cut staff it considers to be underperforming starting as soon as next month, the Financial Times reported, citing people familiar with the plans.
The investment bank traditionally lets go of between 1% and 5% of its workforce every year, but it paused the practice during the Covid-19 pandemic until last year. It’s targeting a number at the lower end of the range at its core investment banking and trading business, the FT said.
Goldman (ticker: GS) declined to comment when contacted by Barron’s.
The move comes after Goldman Sachs already slashed its workforce earlier this year. In January it cut about 3,200, or 6.5% of workers. The company’s profit fell 35% in the first six months of 2023.
Typically one of the most efficient moneymakers on Wall Street, Goldman ran into trouble when it tried expand into savings and lending products for retail customers a few years ago. It has since rolled back its efforts after they failed to take off.
Write to Brian Swint at [email protected]
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