Goldman Sachs Plans Another Round of Layoffs, Targeting Underperformers

Goldman Sachs is planning a fourth round of layoffs since last fall, expected to impact 1% of underperformers starting as early as October.
Around 440 employees have been identified in investment banking, trading, asset management, operations and other divisions.
Layoffs this year will be at the lower end of Goldman's typical 1-5% cull of bottom performers.
Previous rounds totaled 3,450 job cuts in 2022, including 250 managing directors in June.
The cuts come as Goldman's profit fell 35% in the first half of 2022, impacting bonuses and morale.

nypost.com

Relevant topic timeline:

8/21/2023

Goldman sees US shutdown over spending 'more likely than not'

Goldman Sachs analysts predict that the U.S. government is "more likely than not" to shut down later this year due to spending disagreements, which could temporarily impact economic growth by reducing it by 0.15-0.2 percentage points per week, with past shutdowns having minimal impact on equity markets.

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.

Topics

Posted 9/8/2023, 5:01:00 PM