Goldman Sachs Planning Another Round of Job Cuts in Late October, Aiming to Trim Underperforming Staff

Goldman Sachs is planning another round of job cuts for underperforming employees, potentially in late October. The cuts could affect 1-5% of employees.
This is an annual exercise Goldman does as part of performance reviews. The bank reinstated the reviews in 2021 after pausing them in 2020 due to the pandemic.
Goldman Sachs cut 500 employees in September 2022 and reduced its headcount by about 3,200 in Q1 2022, its biggest round of layoffs since 2008.
The job cuts aim to help Goldman Sachs cut costs by $1 billion as managers look to reduce expenses.
Goldman Sachs' Q2 2022 profit slumped 60%, missing estimates, due to writedowns on consumer businesses and real estate investments.

reuters.com

Relevant topic timeline:

8/30/2023

Rising labor costs are making AI stocks even more attractive

Goldman Sachs estimates that about 300 million full-time jobs worldwide could be lost or diminished due to the rise of artificial intelligence, while traders are betting on AI stocks, with companies like Nvidia, Alphabet, and Microsoft seeing significant growth; concerns arise about the potential replacement of jobs with advanced technology, and the rising labor costs for businesses could lead to increased automation and higher profit margins. Additionally, US financial regulators have signed off on new rules that would require banks with at least $100 billion in assets to issue long-term debt in order to absorb losses, which could impact banks' profitability and shareholder returns, and Amazon CEO Andy Jassy has told employees that they must return to the office or find employment elsewhere.

9/5/2023

Goldman Sachs cuts chances of US recession in next one year to 15%

Goldman Sachs has lowered its probability of a U.S recession in the next 12 months to 15% due to positive inflation and labor market data, while also predicting a reacceleration in real disposable income and expecting the Federal Reserve to keep interest rates unchanged.

9/8/2023

Barclays Plans Hundreds of UK Job Cuts in Retail and Investment Banking Units

Barclays is planning to cut hundreds of jobs as part of cost-trimming measures and a wider strategy review, including potential cuts in its domestic retail business and investment bank.

9/18/2023

Tesla Stock Slips as Goldman Cuts Profit View on Price Cuts, Musk Denies Saudi Factory Talks

Goldman Sachs lowers its profit outlook for Tesla due to lower average selling prices and predicts that the company may cut vehicle prices in 2024 to maintain high volumes, leading to a decrease in Tesla stock.

10/5/2023

US Job Cuts Fall in September But Remain Elevated Over 2021 on Recession Fears

U.S. employers reduced planned job cuts in September, particularly in the warehousing sector, although year-to-date workforce reduction intentions increased due to cuts in the technology and retail industries, indicating market uncertainty as the primary reason for layoffs.

Topics

Posted 9/8/2023, 12:27:00 AM