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According to insiders familiar with the matter, Goldman Sachs is gearing up for a new round of job cuts targeting underperforming employees. This annual exercise, set to kick off in the coming month, typically reduces 1% to 5% of the company’s total workforce. This report delves into the specifics of this impending overhaul and its potential implications for the financial giant.
Goldman Sachs’ Ongoing Cost-Cutting Efforts: What’s New?
Goldman Sachs has a history of periodically trimming its workforce, but this year’s initiative seems to be mainly focused on streamlining its core investment banking and trading divisions. The bank is eyeing a modest 1% reduction in its overall headcount, which translates to approximately 440 job positions when considering its diverse array of roles, encompassing asset and wealth management and operational functions.
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The Selection Process: Who’s on the Chopping Block?
Managers at Goldman Sachs have diligently compiled lists of employees who could potentially face dismissal. While specific criteria for selection remain undisclosed, it’s evident that underperformance will be a significant factor. This secretive process has left many employees on edge as they await their fate.
Accelerated Cost-Cutting Efforts at Goldman Sachs
The recent summons to Goldman’s managing directors, instructing them to take more drastic measures to curb expenses, underscores the urgency of the bank’s mission to slash $1 billion in costs. Executives are now scrutinizing even smaller expenditures and contemplating further job cuts as part of this cost-saving endeavor.
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Previous Layoffs and Financial Challenges
Goldman Sachs’ workforce underwent a significant downsizing in the first quarter of the year, resulting in approximately 3,200 job cuts, marking the most significant reduction since the 2008 financial crisis. This austerity drive continued with an additional 250 job losses in May. The bank’s second-quarter profits took a hit, plummeting by 60%, primarily attributed to writedowns in its consumer businesses and real estate investments.
Conclusion
Goldman Sachs’ forthcoming round of job cuts is poised to impact its workforce again. As the financial powerhouse seeks to streamline its operations and rein in expenses, employees across various divisions are bracing themselves for potential layoffs. This move follows an already challenging year marked by significant layoffs and financial hurdles, emphasizing the bank’s commitment to achieving cost-saving targets.
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