Mass Wall Street Layoffs Officially Arrive: Goldman To Lay Off As Many As 4,000 Employees
Make no question about it – despite what the “data” shows and what the Fed says – the job market is, in fact, softening.
We’ve spent the last two weeks writing about how Wall Street firms are going to be cutting their bonus pools significantly, with higher rates throwing a wet blanket over dealmaking and earnings for many firms.
Now, it looks as though the layoffs on Wall Street are hitting high gear. Not one to be last or least decisive to act, Goldman Sachs announced this week that it is going to lay off as many as 4,000 of its employees, according to Semafor and Reuters on Friday morning.
Other Wall Street firms like Citigroup have also announced some cutbacks in staffing, but none as meaningful as Goldman’s cuts. The company’s managers are being “asked to identify low performers for what could be a cut of up to 8% to its workforce early next year”, the Semafor report said this morning.
The move is meaningful even when compared to Goldman’s usual lightening of its workforce, which includes between 2% and 5% of employees either being laid off or receiving no bonuses as part of efforts to trim the business.
Reuters reported Friday morning that Goldman’s headcount, even after the layoffs, will still remain above pre-pandemic levels.