Money & The Economy

Major Bank Announces Biggest Layoff Since ’08 Great Recession

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Goldman Sachs will begin laying off more than 3,000 employees this Wednesday, cutting costs ahead of what the company expects to be a weak start to the year, Reuters reported Monday.

The layoffs are anticipated to begin Wednesday, focusing primarily on its investment banking team, and would be the largest cuts at the investment firm since 2008, according to Reuters. The bank added more than 10,000 employees following a pandemic-induced boom in mergers and acquisitions, a market that has since slumped as central banks worldwide raised interest rates in 2022, according to CNN.

After banks conducted mergers and acquisitions with a record-setting total value of $5.9 trillion in 2021, the industry has since fallen by more than a third, to just $3.66 trillion through Dec. 20, 2022, Reuters reported. Despite the aggressive cuts, the company anticipates that its mergers and acquisitions business will recover in the latter half of 2023.

As of September, Goldman employed roughly 49,100 workers, Reuters reported.

The company previously cut several hundred employees in September following the reinstatement of its annual performance reviews — a practice that had been suspended at the onset of the pandemic and typically resulted in a cut of 1% to 5% of the company’s total workforce. In addition to the cuts made in this most recent round of layoffs, Goldman is also expected to reduce headcount by declining to issue some workers a bonus, which is typically considered to be a request for the employee to resign, The Wall Street Journal reported in December.

Bloomberg initially reported Sunday evening that the company would cut roughly 3,200 jobs this week, before other outlets issued similar reports Monday morning, all citing anonymous sources.

Goldman Sachs did not immediately respond to the Daily Caller News Foundation’s request for comment.

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