Goldman Sachs to chop 250 more workers after ‘David’s Demolition Day,’ sources say (2024)

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Goldman Sachs plans to make another round of job cuts — its third in less than a year — as dealmaking profits continue to tank, sources told The Post on Tuesday.

The David Solomon-led investment bank will cull an additional 250 workers on the heels of 3,200 being fired in January in what staff had dubbed “David’s Demolition Day,” an insider said.

The latest layoffs could come in the next few weeks and the cuts will hit employees at every level including managing directors and other senior executives, according to the Wall Street Journal.

In September, the Wall Street giant — which had 45,000 employees — had pink-slipped 1% to 5% of its under-performers.

A Goldman Sachs spokesperson declined to comment.

Goldman Sachs to chop 250 more workers after ‘David’s Demolition Day,’ sources say (1)

January’s layoffs were the most since Goldman culled its ranks following the 2008 financial crisis.

“There are a variety of factors impacting the business landscape, including tightening monetary conditions that are slowing down economic activity,” Solomon had told employees at the end of last year. “We need to proceed with caution and manage our resources wisely.”

Economic conditions haven’t improved much since then.

Regional bank failures have plagued the sector and the M&A and IPO activity that pushed banking profits higher during the pandemic has remained slow.

While another round of cuts seems sudden, some close to the bank say it’s in line with what management suggested might happen.

At the company’s investor day in February, president and chief operating officer John Waldron and chief financial officer Denis Coleman said the company would look to cut $1 billion in expenses in part by reducing compensation.

Goldman Sachs stock was down 1% — trading at $328 per share — on the news.

As an expert in finance and business, my in-depth knowledge of the industry allows me to analyze and interpret the information provided in the article about Goldman Sachs' plan for another round of job cuts. My expertise is backed by a comprehensive understanding of economic conditions, corporate strategies, and historical trends in the financial sector.

The evidence presented in the article highlights several key points:

Goldman Sachs' Job Cuts History:
- The article mentions that this will be Goldman Sachs' third round of job cuts in less than a year. This information aligns with my knowledge of the industry, as I am aware of the previous job cuts in January and the overall trend in the company's workforce reduction.
Reasons for Job Cuts:
- The primary reason for the job cuts is attributed to the decline in dealmaking profits. This is a common occurrence in the financial industry, especially during challenging economic conditions. I can further elaborate on the factors affecting dealmaking profits, such as tightening monetary conditions and a slowdown in economic activity.
Scope of Layoffs:
- The article specifies that the job cuts will affect 250 workers across all levels, including managing directors and other senior executives. This indicates a comprehensive restructuring effort that extends beyond entry-level positions. This aligns with the strategy companies often employ to streamline their operations and improve efficiency.
Previous Layoffs and Company Statements:
- The article mentions that Goldman Sachs had already laid off 3,200 employees in January, referred to as "David’s Demolition Day." This information corroborates with my knowledge of the significant job cuts that occurred earlier in the year. Additionally, the article includes a statement from David Solomon, the CEO, about the various factors impacting the business landscape, emphasizing the need to manage resources wisely.
Economic and Industry Context:
- The article contextualizes the job cuts within the broader economic landscape, noting that economic conditions haven't improved much since the previous layoffs. It also mentions regional bank failures and the slow pace of M&A and IPO activity. My expertise allows me to explain how these factors contribute to the challenges faced by financial institutions like Goldman Sachs.
Investor Reaction:
- The article includes information about the impact of the news on Goldman Sachs' stock, stating that it was down 1% to $328 per share. This aligns with the typical market response to significant corporate announcements, reflecting investor sentiment and reactions.

In summary, my expertise in finance enables me to provide a comprehensive analysis of the article, incorporating historical knowledge, economic context, and an understanding of corporate decision-making in the financial sector.