David Solomon, the CEO of Goldman, said that the company faces many problems, such as “tightening monetary conditions” that are slowing down the economy.
According to a report published late on December 28th, Goldman Sachs’ CEO expects to lay off employees in early January.
Goldman CEO David Solomon stated in his annual year-end letter to employees, “We are doing a comprehensive analysis, and while conversations are still ongoing, we estimate our workforce reduction to take effect in the first half of January,” according to Bloomberg News.
According to Bloomberg, Solomon stated that the corporation is facing a number of obstacles, including “tightening monetary conditions” that are producing an economic slowdown, and that “the focus is on preparing the firm to withstand these headwinds.”
Earlier this month, it was reported that the financial behemoth planned to lay off almost 8% of its workforce, or nearly 4,000 individuals. Bloomberg reported on December 28 that the number of future layoffs has not been determined and may be lower.
After suspending them during the pandemic, Goldman reinstated them in 2022. During the pre-pandemic era, the company would lay off 2% to 5% of its lowest-performing staff each year.
Goldman employed approximately 49,000 people at the end of its third quarter, and executives have stated that its workforce has grown by 34% since Solomon took over as CEO in 2018, roughly twice the rate of its main competitors.
The New York Post reported last week on internal Goldman Sachs grumblings about Solomon from middle- and upper-level management, raising the possibility that his job is also in jeopardy.
In October, Goldman reported that its third-quarter net income was down 44% from the previous year, and revenue was down to $11.98 billion from $13.61 billion the previous year. Nonetheless, Goldman is on track to post its second-highest annual revenue ever, around $48 billion. The bank also announced a hiring freeze and a reorganisation into three business units: Asset & Wealth Management, Global Banking & Markets, and Platform Solutions.
Goldman shares have gained more than 13% in the last three months but are still down about 11% year to date, compared to the S&P 500’s 2% gain and 21% decline during the same periods.
