Goldman Sachs To Trim Workforce By Up To 4% In Annual Review Process

Goldman Sachs is preparing to lay off between 3  to 4 per cent of its workforce, amounting to roughly 1,300 to 1,800 employees, as part of its routine annual review process, according to a report by the Wall Street Journal (WSJ). The layoffs, which have already begun, are expected to extend through the fall and will affect various departments within the bank.

Tony Fratto, a spokesperson for Goldman Sachs, commented on the matter, saying, “Our annual talent reviews are a normal, standard, and customary process, but otherwise unremarkable.” Despite the layoffs, Fratto mentioned that the bank anticipates its total headcount to be higher by the end of the year compared to 2023.

The report further noted that other major banks follow similar practices, reducing their workforce by identifying and letting go of underperforming employees. In the first quarter of this year, the largest U.S. banks collectively cut over 5,000 jobs to control costs amid a challenging economic climate, with Citigroup leading the way by eliminating 2,000 positions.

Historically, Goldman Sachs’ annual review process has resulted in workforce reductions ranging from 2 to 7 per cent, depending on the bank’s financial outlook and market conditions. Last year, the bank implemented a 6 per cent cut in January, followed by additional layoffs in May and the fall.