Goldman Sachs to start cutting up to 3,200 jobs this week



Redundancies expected to be concentrated in investment banking division and consumer arm

Goldman Sachs is expected to start one of the biggest rounds of redundancies in its history this week, with as many as 3,200 jobs to go as it looks to cut costs.

The bank is expected to begin informing people that they will lose their jobs on Wednesday.

The world’s big investment banks enjoyed a boom in 2021 and early 2022 as companies embarked on a huge number of mergers and acquisitions after coronavirus lockdowns. However, the number of takeovers has dropped significantly as interest rates have risen and company valuations have plummeted.

Goldman Sachs expanded rapidly faster than its rivals during the boom, and did not institute its usual practice of firing the lowest performers. The chief executive, David Solomon, late last month told staff that the cuts were necessary to “weather the headwinds” caused by rising interest rates.

The cuts are expected to be concentrated in the investment banking division, where fee income has fallen, and its consumer arm, where it has scaled back ambitions for the underperforming Marcus brand – though most divisions across the bank are likely to be affected.

The 3,200 job losses would represent about 7% of the bank’s global workforce of 49,000. Bloomberg News, which first reported the proposed extent of the job cuts, said the bank would continue hiring at junior levels.

Goldman had reportedly been considering as many as 4,000 job losses. It is also thought to be considering cuts to its bonus pool of up to 40%.

The job and bonus cuts will allow Solomon to offer signs of action to the bank’s shareholders when it reports its full-year earnings on 17 January. Goldman is expected to report its second-best annual profits since 2009, but investors are concerned that the bank’s shares are trading at a discount relative to rivals such as Morgan Stanley.

Solomon is holding a separate investor day in February to explain a restructuring plan that he hopes will improve the bank’s performance.



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Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

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