Goldman Sachs CEO announces layoffs in January

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Goldman Sachs CEO David Solomon has announced in a year-end letter to employees that the company will be conducting a fresh round of layoffs in January. In the letter, Solomon cited tightening monetary conditions and the slowdown in economic activity as the reasons behind the layoffs.

“We are conducting a careful review and while discussions are still ongoing, we anticipate our headcount reduction will take place in the first half of January,” Solomon wrote. “There are a variety of factors impacting the business landscape, including tightening monetary conditions that are slowing down economic activity. For our leadership team, the focus is on preparing the firm to weather these headwinds.”

Solomon also mentioned that the company needs to “proceed with caution and manage our resources wisely,” as Goldman Sachs has been struggling financially in recent years. According to the company’s Q3 FY22 report, banking net sales were down 57% year-on-year, while net revenues from corporate lending were down 77% and equity underwriting was down 79% compared to Q3 FY21.

Despite these financial struggles, Goldman Sachs’ employee headcount has actually increased by 34% to over 49,000 since 2018. Other financial services companies, such as Morgan Stanley and Deutsche Bank, have also laid off employees or slowed down hiring in response to the economic slowdown. Credit Suisse Group and Barclays are among the other firms that have taken similar actions.