The Goldman Sachs logo is seen at the New York Stock Exchange in New York City on Sept. 13, 2022. Goldman is laying off up to 3,200 employees as it faces a more challenging business environment. Michael M. Santiago/Getty Images hide caption
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Michael M. Santiago/Getty Images
The Goldman Sachs logo is seen at the New York Stock Exchange in New York City on Sept. 13, 2022. Goldman is laying off up to 3,200 employees as it faces a more challenging business environment.
Michael M. Santiago/Getty Images
At Goldman Sachs, the New Year is starting with thousands of job cuts.
One of Wall Street's biggest banks plans to lay off up to 3,200 employees this week, as it faces a challenging economy, a downturn in investment banking, and struggles in retail banking.
It is one of the biggest rounds of layoffs at Goldman since the 2008 Global Financial Crisis.
Goldman, like many other investment banks, has seen its profits take a hit as markets have tumbled since last year because of aggressive interest rate hikes from the Federal Reserve.
The downturn has led to sharp declines in the number of deals and stock listings, as well as trading activity. Goldman has also struggled to gain much traction in consumer banking despite hefty investments.
"Wall Street is still Wall Street, and that means a very intensive environment, making money for their customers and the firm, having high intensity and adjusting on a dime as conditions change," says Mike Mayo, an analyst with Wells Fargo who has covered commercial banks for decades.
Goldman is restructuring its business
Goldman CEO David Solomon has been emphasizing the difficulty of this current economic environment.
Financial firms, like technology firms, had increased their head counts during the pandemic when business was booming, but they are now being forced to announce job cuts and to rethink how they operate. Goldman had just over 49,000 employees at the end of September.
Goldman CEO David Solomon listens during the Milken Institute Global Conference in Beverly Hills, Calif., on May 2, 2022. Patrick T. Fallon/AFP via Getty Images hide caption
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Patrick T. Fallon/AFP via Getty Images
Goldman CEO David Solomon listens during the Milken Institute Global Conference in Beverly Hills, Calif., on May 2, 2022.
Patrick T. Fallon/AFP via Getty Images
In October, Goldman announced a broad restructuring plan. It combined trading and investment banking into one unit and created a new division that is focused on the company's digital offerings.
Goldman is also turning the page on its attempt to compete against the likes of J.P. Morgan Chase & Co. and Bank of America in retail banking.
For almost a decade, Goldman Sachs has tried to make inroads there, but its consumer-facing brand, Marcus, never caught on.
Marcus has been folded into Goldman's asset and wealth management unit as part of that restructuring, and its head announced plans to leave the firm last week.
A return to the normal practice of cutting staff
It's not just the business downturn that's sparking layoff fears in Wall Street.
Goldman Sachs and other Wall Street firms have traditionally cut low-performing staff each year, a practice they put on pause during the pandemic. Goldman, for example, didn't do these regular layoffs in 2020, 2021, and 2022.
Chris Kotowski, an analyst with Oppenheimer & Co., says everyone working on Wall Street gets accustomed to these kinds of staff reductions, difficult as they are. It's just part of the business of doing business.
"You know, people just don't work out," he says. "Sometimes you expanded into an area that just wasn't fruitful, and sometimes you've just overhired."
And even after this week's layoffs, Goldman Sachs's head count is expected to be larger than it was before the pandemic.
FAQs
Today's fourth quarter Goldman results show that the US bank ended December 2023 with 45,300 people, down from the 45,900 people it had in September. During 2023 as a whole, 3,200 jobs were cut, mostly as a result of the well-publicised job cuts at the start of the year.
Is Goldman Sachs in trouble? ›
The bank also got caught up in a Malaysian investment scandal involving billions of dollars. Most recently, Goldman's venture into consumer banking has bit the dust, failing to gain traction with potential customers. The bank has closed most of the consumer operation after spending billions to get it off the ground.
How many Goldman Sachs employees are there? ›
There were 45.3 thousand employees at Goldman Sachs globally in 2023. The employment level in all of the commercial banks insured by the Federal Deposit Insurance Corporation (FDIC) in the United States has risen over time. The number of jobs changed from 1.88 million in 2009 to 2.02 million in 2022.
How long should you stay at Goldman Sachs? ›
- Saving Specialist Goldman Sachs Employee Review. Great benefits that are given on the spot. Near impossible to move up and a lot of corporate politics.
Why is Goldman laying off people? ›
One of Wall Street's biggest banks plans to lay off up to 3,200 employees this week, as it faces a challenging economy, a downturn in investment banking, and struggles in retail banking. It is one of the biggest rounds of layoffs at Goldman since the 2008 Global Financial Crisis.
Why is Goldman Sachs laying off? ›
But the move comes after another drop in earnings last month when Goldman Sachs saw profit plummet 33% in the third quarter as the bank faces ongoing losses from selling off chunks of its consumer lending business and worse than expected revenue from its asset and wealth management division.
How risky is Goldman Sachs? ›
Based on Goldman's liabilities, the bank is heavily loaded with deposits, which span nearly 30% of its financial liabilities. However, investors must consider that the bank is an industry leader. Therefore, depositors might consider its liabilities more secure than those of regional or Tier-2 banks.
How safe is Goldman Sachs bank? ›
FAQs. Is Marcus by Goldman Sachs safe? Marcus by Goldman Sachs funds are covered by FDIC insurance, which covers you for as much as $250,000 per depositor, per institution, in the event of a bank failure.
Is Goldman Sachs Marcus shutting down? ›
Goldman Sachs is closing Marcus Invest, an automated-investing service, and is selling Marcus Invest's digital investing accounts to robo-advisor Betterment.
Who owns majority of Goldman Sachs? ›
Largest shareholders include Vanguard Group Inc, BlackRock Inc., State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Geode Capital Management, Llc, Capital World Investors, Morgan Stanley, Spdr Dow Jones Industrial Average Etf Trust, and ...
Who owns the most shares of Goldman Sachs Group (GS)? Vanguard owns the most shares of Goldman Sachs Group (GS).
Who is the majority owner of Goldman Sachs? ›
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Goldman Sachs Group. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 8.1% of shares outstanding.
What is the Goldman Sachs 15 minute rule? ›
It means you have to respond to an email in 15 minutes or less no matter what.
How much PTO do you get at Goldman Sachs? ›
Under the new policy, more than 1,400 senior bankers will no longer have a cap on their time off, while Junior employees will get two extra days off. However, according to the Bank, all employees will be expected to take a minimum of 15 days a year beginning in 2023.
Is working at Goldman stressful? ›
Working at Goldman Sachs can be difficult and stressful, especially in roles that require long hours and intense workloads.
Is Goldman Sachs laying off more people? ›
Goldman reduced its headcount by about 3,200 in the first quarter in its biggest round of layoffs since the 2008 financial crisis. It also cut about 250 jobs in May.
How much severance does Goldman Sachs pay? ›
After laying off about 3,200 workers last week, Goldman Sachs has begun sending out severance letters. According to the letters, laid-off employees will receive five weeks of severance pay and some benefits. More: Compared to the tech sector, a five-week severance is relatively low.
Who is leaving Goldman Sachs? ›
Cohen's exit is the latest high-profile departure from Goldman. Global banking and markets co-head Jim Esposito, asset management executive Julian Salisbury and Dina Powell McCormick, former head of the sovereign business, are among the other big names to have left the bank in recent months.
How many Goldman employees are in NYC? ›
LARGE
| NYC Employees | 6,800 |
|---|
| U.S. Employees | 12,200 |
| Industry | Financial services |
| Average salary | $133,000 |
| Voluntary turnover rate (2008) | n/d |
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