Reuters reported on Friday, December 16th, that the planned cuts followed the firm’s laying off 500 employees in September and its intentions reported last week to cut hundreds of staff related to its retail banking business — a number that is a part of the more prominent figure reported Friday.
This trend is seen throughout Wall Street, where global banks Citigroup and Morgan Stanley reduced their staff in recent months. The report attributed this to the challenging macroeconomic environment in which fewer mergers and share offerings are happening amidst high-interest rates, global tensions, and rising inflation. This comes just a year after a booming 2021 for Goldman Sachs, in which some investment bankers earned bonuses of up to 50%, according to the report.
“GS [Goldman Sachs] needs to show that its costs are as variable as its revenues, especially after a year when it provided special rewards to top managers during the boom,” Mike Mayo, Wells Fargo banking analyst told Reuters. A Goldman Sachs spokesperson told PYMNTS that the firm has no comment on the recently published report.