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Goldman Sachs Group CEO David Solomon announced in his annual end-of-year message to staff that the new year will bring job cuts for the company.
Up to 4,000 jobs, approximately eight percent of the company's workforce, are on the line, according to internal sources that spoke with Bloomberg who have requested that their identity be hidden, although it is possible that number could end up being lower.
"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 announced. "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."
"We need to proceed with caution and manage our resources wisely," Solomon added.
The company's top managers have been asked to identify any potential belt-tightening changes that could be made in order to contain a slump in revenue and profit, sources said.
While Goldman is set to post $48 billion in annual revenue, that number is a decline from last year, as attempts to build a more diversified company, including an ambitious foray into consumer banking, have bloated the workforce. The subsequent dialing back of these diversifications are hammering the Wall Street giant's profits, which are set to come in up to 44 percent below their target.
The company's workforce has increased by 34 percent in the last four years, which is now getting dangerously close to the 50,000 mark. The proposed job cuts, a sharper pullback than any of their rivals, will help management to more easily meet their profitability targets next year.
This year has seen job cut announcements from numerous media and tech companies, as businesses try to adjust to an ever-changing consumer landscape, exacerbated by a global pandemic and ballooning inflation.
Up to 4,000 jobs, approximately eight percent of the company's workforce, are on the line, according to internal sources that spoke with Bloomberg who have requested that their identity be hidden, although it is possible that number could end up being lower.
"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 announced. "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."
"We need to proceed with caution and manage our resources wisely," Solomon added.
The company's top managers have been asked to identify any potential belt-tightening changes that could be made in order to contain a slump in revenue and profit, sources said.
While Goldman is set to post $48 billion in annual revenue, that number is a decline from last year, as attempts to build a more diversified company, including an ambitious foray into consumer banking, have bloated the workforce. The subsequent dialing back of these diversifications are hammering the Wall Street giant's profits, which are set to come in up to 44 percent below their target.
The company's workforce has increased by 34 percent in the last four years, which is now getting dangerously close to the 50,000 mark. The proposed job cuts, a sharper pullback than any of their rivals, will help management to more easily meet their profitability targets next year.
This year has seen job cut announcements from numerous media and tech companies, as businesses try to adjust to an ever-changing consumer landscape, exacerbated by a global pandemic and ballooning inflation.
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