Goldman Sachs Plans for Fresh ‘Modest’ Layoffs

Goldman Sachs Plans for Fresh ‘Modest’ Layoffs

November 18, 2020

Wall Street investment banking giant, Goldman Sachs is preparing for further job cuts months after it decided to trim around 400 positions, Reuters reported on Wednesday.

The exact number of the upcoming job cuts at Goldman Sachs, however, is not known yet. The bank only admitted to going with “a modest number of layoffs”.

Though the New York-headquartered bank was planning for layoffs for a long time, it earlier halted its plans due to the Coronavirus pandemic.

In September, the investment bank resumed cuts in the workforce with a similar “modest number of layoffs.” Though not confirmed, those cuts expectedly did not surpass the previously decided 400 layoffs.

Reducing Operational Costs

The cuts are a part of Goldman’s push to reduce its operational costs. Last January, the investment bank announced its strategic plans to reduce $1.3 billion in its expenses over the next three years.

Apart from the layoffs, the bank is also focusing on other fronts for cost cuts. Earlier this month, Goldman Sachs CTO revealed the investment bank’s plan to transfer more staff to inexpensive locations globally.

Earlier media reports also revealed that the bank might go with some significant workforce cuts next year. However, with the upcoming layoffs, it is not clear if the bank will go further with such harsh steps.

Meanwhile, the Wall Street bank is posting excellent results for the previous consecutive quarters following the impact of the pandemic on global markets. Its earnings per share also jumped to $9.68 in the third quarter of 2020 from the previous quarter’s $6.26.

Similar to Goldman, many other major financial players are cutting their staff, mostly to reduce operating costs. HSBC is cutting 35,000 staff globally, while ING planning to show the exit to around 1,000 employees.

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