Goldman Sachs plans to cut a few hundred jobs as part of its annual performance review, a source familiar with the matter told Reuters on Friday.
The investment bank reintroduced performance-based job cuts in 2022 after a two-year pause during the COVID-19 pandemic.
A Goldman spokesperson stated, “Our annual talent reviews are routine and standard practice. We anticipate having more employees at Goldman Sachs in 2024 than in 2023.”
Last year, the performance reviews led to job losses for 1% to 5% of Goldman employees. Historically, the extent of these cuts has varied with market conditions and financial outlook.
As of the end of June, Goldman Sachs employed 44,300 people. The bank had several rounds of layoffs in 2023 due to a slowdown in dealmaking and prolonged high interest rates.
However, the operating environment has improved, with Goldman reporting a more than doubling of its second-quarter profit in July, driven by strong debt underwriting and fixed-income trading.
The recovery in the U.S. economy has encouraged corporate executives to pursue deals and financing activities, though dealmaking remains below historical norms.
Goldman Sachs’ shares turned positive in afternoon trading, closing up 0.6%. The stock has risen 32% this year, outperforming the broader market and an index of major banks.
Earlier, the Wall Street Journal reported that the layoffs, which have already started, could impact over 1,300 employees, or 3% to 4% of the workforce. Goldman Sachs, however, contested this figure, stating that the Journal’s report was inaccurate.
