Goldman Sachs plans to cut up to 8% of its workforce in January

David Solomon, CEO of Goldman Sachs Group Inc., during a Bloomberg Television at Goldman Sachs Financial Services Conference in New York, U.S., Tuesday, Dec. 6, 2022.

Michael Nagle | Bloomberg | Getty Images

Goldman Sachsthe big investment bank, plans to cut up to 8% of its workforce as it faces a tougher environment next year, according to a person with knowledge of the situation.

The layoffs will affect every department of the bank and are likely to happen in January, according to the person, who declined to be identified and spoke about personnel decisions.

It is ahead of an upcoming conference for Goldman shareholders where management is expected to present performance targets. The New York-based investment bank typically pays bonuses in January, and it’s possible that layoffs could be a way to preserve bonus dollars for remaining employees.

The bank’s planning is ongoing and the round could be smaller than that, the person added. But that means as many as around 4,000 employees could be affected, as reported by Semafor earlier Friday. Goldman had been in hiring mode earlier: the firm had 49,100 workers as of Sept. 30, up 14% from a year earlier.

Goldman CEO David Solomon indicated he was looking to rein in spending at a conference for financial firms last week.

“We continue to see headwinds to our expense lines, particularly in the near term,” Solomon said. “We have initiated certain cost-cutting plans, but it will take some time to realize the benefits. Ultimately, we will remain nimble and we will size the firm to reflect the opportunities that have been set.”

This story is in development. Please check back for updates.

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