Goldman Sachs is preparing to cut thousands of employees to navigate a difficult economic environment, a source familiar with the move says.
News platform Semafor reported on Friday that the multinational investment bank plans to lay-off up to 4,000 people as it struggles to meet profitability targets, citing people familiar with the matter.
The Wall Street bank had 49,100 employees at the end of the third quarter of this year, after adding significant numbers of staff during the pandemic.
The company’s headcount wouldremain above pre-pandemic levels, which stood at 38,300 at the end of 2019, the source said.Goldman Sachs declined to comment.
Job cuts accelerating across Wall Street
The bank signalled it was scaling back its ambitions for Marcus, the loss-making consumer unit, in October.
Goldman also plans to stop originating unsecured consumer loans, a source familiar with the move told Reuters earlier this week, another sign it is stepping back from the business.
Chief executive David Solomon, who took the helm in 2018, has tried to diversify the company’s operations with Marcus.
It was placed under the wealth business in October as part of a management reshuffle that also merged the trading and investment banking units.
The lay-offs are the latest sign that cuts are accelerating across Wall Street as deal-making dries up.
Investment banking revenues have plunged this year amid a slowdown in mergers and share offerings, marking a stark reversal from 2021, when bankers received big pay bumps.