Goldman Sachs (NYSE:GS) is launching its biggest round of job cuts since the onset of the pandemic.
Several hundred jobs reportedly will be axed by the Wall Street titan starting this month.
Though there are fewer reductions than in previous rounds, Goldman Sach is again resuming its annual cull cycle that was paused as a result of the pandemic.
After record-breaking years, there has been a slump in revenue across the banking industry, leading to this move from the industry bellwether.
Analysts expect the bank's earnings to drop by more than 40% this year after second-quarter earnings almost halved.
The New York-based firm cautioned in July it would slow hiring and reinstate performance reviews.
During what it called a "challenging operating environment," the company aims to reduce costs.
In addition, Goldman could reduce the pace at which it replaces staff lost through attrition, according to chief financial officer Denis Coleman.
With recent acquisitions, the firm had 47,000 employees at the end of the second quarter, compared with 39,100 two years ago.
Goldman reported a 48% decline in profits for the second quarter as revenues in its investment banking division dropped to US$2.1bn or by 41% from a year ago.
Pay and bonuses plummeted 40% reflecting the sinking profits.