Goldman Sachs (NYSE:GS) (Goldman Sachs (NYSE:GS)) plans to cut 4,000 employees as the US investment bank struggles to make profitability targets, according to a report today.
Faced with missing profitability goals, a vanishing of dealmaking as a result of a downturn in the economy and big bets not paying off, the firm will be looking to make cuts to balance the books.
Online publication The Scoop, quoting people familiar with the matter, said managers have been asked to identify low performers, potentially cutting 8% of its workforce by early next year.
In comparison to other Wall Street firms, Goldman seems to be making deeper cuts in its workforce.
Citigroup, for example, is letting go of dozens of staffers while Barclays is laying off roughly 200 people, according to CNBC.
In a typical year, between 2% and 5% of Goldman’s employees are laid off or receive no bonus, a clear sign to start looking for another job.
However, it has skipped these sackings in the last two years. Under chief executive David Solomon, Goldman's workforce has swelled by a third since he took charge in 2018.