Goldman Sachs is planning on cutting hundreds of jobs this month, at least up to 2% of its current staff. It would mark the first major firm on Wall Street to do so as the firm faces a lower volume of deals.
Historically, they were called annual employee culls. About 1% to 5% of lower performers in positions across the firm may be affected by the cull.
Goldman Sachs currently has about 47,000 employees, so 1% of those would be several hundred jobs that may be cut.
Goldman Sachs is also not likely to remain the only bank to cut down on staff. Prior to the pandemic, Wall Street firms would lay off bottom performers in months following Labor Day and before bonuses are paid out. The practice was put on a pause over the last few years, however.
The pause has been lifted though, with CNBC reporting back in July that Wall Street firms would return the practice.
Goldman has been facing lower revenues across different sectors within the firm, including a drop by 38 percent in investment banking. However, trading has gone up by 15 percent.
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